how must an attorney bill for work on two or more matters at the same time?

Can you bill two clients at the same time?

Billing Two Clients for the Same Work Regardless of how many clients benefit from the work performed, it's unethical for lawyers to bill each client individually for the full time spent. To avoid double billing, attorneys should split the bill among the clients.

Is double billing unethical?

According to ABA Opinion 93-379, double-billing is unethical and violate the rules of professional conduct, specifically Model Rule 1.5, even if the attorney actually completed multiple tasks for multiple clients. An attorney is not entitled to bill more than one client for one time-slot.

How do I avoid double billing?

Duplicate Payment? Here's How To Never Pay The Same Invoice TwiceRegularly review your vendor master files to remove duplicated vendors. ... Double check for miskeying and misreading. ... Control rush check requests. ... Don't pay from multiple source documents. ... Have a fixed invoicing methodology.More items...•

Can two attorneys work on the same case?

Yes, you can hire another attorney to either take over or co-counsel . However, if the sentence has already been given, your friend and the second lawyer have a completely different matter to handle. Hiring a second attorney cannot be for a do-over.

What is double billing law?

Double billing refers to charging an hourly rate to two clients for the same time spent. This prohibits double billing. It is tantamount to overcharging, since the amount of time actually spent working on any one client's work is less than the amount billed to that client.

What is block billing?

Block billing is the practice of listing a group of tasks in a block summary under a single time entry. For example: “Draft interrogatory requests; telephone conference with Dr. Brown re: expert report; summarize deposition of Mr. Smith; review and revise correspondence to opposing counsel. 7.3 hours.”

Can two invoices have the same number?

Duplicate invoice numbers are not allowed and will cause an error message to pop up ("The invoice number is already in use"). If a company creates an invoice with a number that has already been used, they get an error, and to proceed they must change the invoice number.

What is a duplicate invoice?

Duplicate invoices happen when multiple invoices with slightly different attributes (invoice numbers, dates, and sometimes amounts) are submitted for the same goods or services. When not detected, multiple payments are processed contributing to significant amounts of spend leakage.

What causes duplicate invoices?

What causes Duplicate Invoices? Duplicate invoices can be the result of a variety of issues ranging from human errors to complex internal business processes. Some of the common causes of Duplicate invoices include: Data entry errors, such as a misread invoice number or a typo.

Can a lawyer have multiple clients?

1. The California Rules of Professional Conduct strictly prohibit attorneys from undertaking the simultaneous representation of multiple clients in the same matter in any circumstance. 2. Joint representation is only permitted in transactional practices, not litigation matters.

Can a lawyer work for two law firms at the same time?

The Code of Professional Responsibility does not prohibit a lawyer from being associated with more than one law firm.

Has anyone ever won a case representing themselves?

people who represented themselves in court Bundy, a former law student, represented himself while on trial for the murder of two college students and assaulting others in 1979. He grilled some of his surviving victims – sorority sisters of the two women murdered -- in the courtroom, but was ultimately convicted.

Christopher Daniel Leroi

Double-billing is illegal. That is what got the law firm in the book and the movie "The Firm" got in trouble for doing and was exposed by Tom Cruise's character. Many attorneys multi-task, however they should not be billing for the same time for multiple clients. That is not to say that it is not done.

Estela Matta

Double billing is illegal. However, an attorney can charge for travel, and any legitimate out of pocket costs as expressed in the retainer agreement. He/she just cannot charge two or more people for the same time.

How often do attorneys bill?

Attorneys usually bill in 1/10 th of an hour increments, meaning you will be charged 1/10 th of the hourly rate for every 6 minutes the attorney spends on your case. The most common billing frequency is monthly, however, some attorneys will send bills more frequently, others less frequently.

Why do lawyers need to put contracts in writing?

A written contract prevents misunderstandings because the client has a chance to review what the attorney believes to be their agreement.

What are the biggest concerns when hiring a lawyer?

Attorney fees and costs are one of the biggest concerns when hiring legal representation. Understanding how attorneys charge and determining what a good rate is can be confusing.

What are the costs of a lawsuit?

Some common legal fees and costs that are virtually inescapable include: 1 Cost of serving a lawsuit on an opposing party; 2 Cost of filing lawsuit with court; 3 Cost of filing required paperwork, like articles forming a business, with the state; 4 State or local licensing fees; 5 Trademark or copyright filing fees; and 6 Court report and space rental costs for depositions.

What factors determine if a lawyer's fees are reasonable?

Factors considered in determining whether the fees are reasonable include: The attorney’s experience and education; The typical attorney fee in the area for the same services; The complexity of the case; The attorney’s reputation; The type of fee arrangement – whether it is fixed or contingent;

What is the first step in resolving a dispute with a lawyer?

The first step to resolving these disputes is communication . If there is a disagreement, clients and attorneys should first seek to discuss it and try to reach a mutually agreeable solution. Often, small disagreements balloon merely because both the attorney and the client avoided talking to the other out of fear.

What is the most common legal fee arrangement?

Hourly rates have traditionally been the most common legal fee arrangement. However, as technology changes and the practice of law evolves, it is more common to see “non-traditional” fee arrangements like flat-fee packages.

How to identify persons who may view you as their lawyer?

Conflicts or client intake databases can also help you identify persons who may view you as their lawyer, even though they never signed a retainer agreement or paid you any money to represent their interests. You can build such databases so that they contain fields of data that detail which persons or firms already have counsel to represent their interests. Once your satchel is filled with such data, you can review the file and specify the persons whom you may want to inform in writing that you do not represent their interests and that they should hire separate counsel.

Why do attorneys do head counts?

Another reason for performing the head count is that sometimes attorneys will find that certain conflicts between their multiple clients cannot be waived under their jurisdiction’s version of ABA Model Rule 1.7 (b). Such situations can occur not only in litigation, but in multiparty transactional work. Still, even with the increasing use of computers and databases by attorneys and their law firms, recent case law from a variety of jurisdictions instructs us that the primary task of counsel with multiple clients is to first “spot” the actual or potential conflicts.

What are the two categories of Model Rule 1.7?

First, does one client stand in direct adversity to another client? Second, do the circumstances of the multiple representation signal a risk that representation of one client will be substantially restricted by the duties owed to another client? These two broad categories support creating a database that lists each of the multiple clients, and contains fields for identifying the foes, interests, neutral parties and friends of each of the multiple clients. The intake process can create a roster of all the players and classify their roles. For example, if you have multiple clients through an LLC, your database can identify who are the constituent members of the LLC. In employment cases, your database can show if the clients have the same job title, or in product cases, whether they used the same product during a set time span. Some customizing of your client conflicts database may prove helpful and aid your internal office discussions about how to inform the multiple clients of the nature of the risks and potential conflicts that can arise from your representation of multiple clients in the same matter. Model Rule 1.7, Comment at ¶18. Such discussions with the multiple clients should disclose that the attorney-client privilege does not apply between the clients, and that absent agreements to keep certain data confidential from some of the multiple clients, such as trade secrets, confidences will be shared between the multiple clients. Model Rule 1.7, Comment at ¶¶30-31.

Who represented a defendant hospital and a defendant physician in litigation?

Counsel represented a defendant hospital and a defendant physician in litigation. The physician’s acquisition and use of a drug, if relevant at trial, could be explained by the physician as having occurred after obtaining approval from the hospital’s in-house counsel .

Do all counsels have to trace their clients?

All counsel with multiple clients in the same matter need to trace the interests of each of their clients. Only upon mapping out such interests can one see whether the interests of the multiple clients converge or conflict with the interests of all the other multiple clients.

Can an attorney owe fiduciary duty to other shareholders?

In those circumstances, an attorney can owe a fiduciary duty to the other shareholders, and in this instance, other members of the LLC. Such facts create the risk of potential liability exposure through unintended but potential breaches of fiduciary duty owed to the non-controlling members of the LLC.

Can an LLC contract with its members?

An LLC can contract with its members, or the members of its members. Therefore, when a dispute or disagreement arises over the interests controlled by one of the LLC members, attorneys may find themselves in a situation akin to representing a closely held corporation and a controlling shareholder.

How to write a bill for a law firm?

These should include when to send invoices, how long descriptions should be, what types of expenses must be included on bills and what should be written off, and any standard introductory communications on bills, if needed. 2. Write out the flow of your law firm’s billing process.

Why is it important to ask lawyers to use a specific system?

It’s helpful to ask lawyers to use a specific system, such as your legal practice management software, to conduct reviews electronically. This helps speed up the process and leaves less room for error; you can even use automation software.

Why is billing important in law?

Billing is critical to the success of your law firm. And yet, for many law firms, billing clients and chasing down payments can still be one of the most time-consuming, repetitive, and dreaded parts of the job.

Why send out bills?

With the right system, you can send out bills and reminders quickly, so there’s no reason to put off billing your clients. Sending out smaller bills consistently can lower the shock of a large unexpected bill. Plus, there’s the added benefit of encouraging a smoother cash flow for your firm.

How to keep your billing process on track?

To keep your billing process on track, you should keep a close eye on outstanding balances, payments, and revenues. The following reports can help you monitor your law firm’s financial health and keep your billing process running smoothly:

What is billing code?

Separate from descriptions, billing codes convey—at a high level—which activities or expenses a client is being billed for.

Why is a billing policy important for a law firm?

Your law firm’s billing policy. To save your law firm valuable time and money, having a clear, standardized law firm billing policy in place is essential. It gives lawyers and staff something to refer to and keeps everyone in sync. If you’re writing a policy for the first time, you’ll want to consider:

Why do attorneys need to track tasks?

All tasks are important to the firm’s success, whether billed or not. Non-billable tasks contribute to the overhead costs of the firm, so they need to be tracked and accounted for when evaluating overall efficiency and profit.

Why do lawyers prefer fixed fee?

This is so they can ensure that they are adequately charging for the current matters, as well as future flat fee arrangements.

Why is it important to know what billing increment to use for invoicing?

When working for an attorney or firm, it’s important to know which billing increment to use for invoicing. Inaccurate billing can lead to trouble for the firm, including inadequate payment for tasks or padded bills and ethical dilemmas.

How many minutes are billed in a task?

1/10th of an hour or 6 minutes – Tasks are billed in 6-minute increments. If a task takes less time than this, it is rounded up to 6 minutes for billing purposes. For example, a 3-minute telephone call is billed for 6 minutes. This is the most common billing increment utilized within the legal profession. 1/6th of an hour or 10 minutes – Tasks are ...

What is billable hour law?

Some law firms have traded in the billable hour for fixed fee billing. This type of arrangement sets a specific price for attorney matters, cases, and/or tasks. For example, instead of billing at $200 an hour to handle an uncontested divorce, the attorney may charge $2000 to complete the entire matter.

What is block billing?

First, avoid block billing. This is the practice of listing numerous tasks under one single block of time. For example, a block billed invoice may state:

How long is a task billed?

1/6th of an hour or 10 minutes – Tasks are billed in 10-minute increments. If a task takes less than 10 minutes, it is rounded up to 10 minutes for billing purposes. For example, an 8-minute review of documents is billed for 10 minutes. 1/4th of an hour or 15 minutes – Tasks are billed in 15-minute increments.

How many minutes does a law firm bill?

Partners, associates, paralegals, litigation support staff, and other timekeepers bill their time in six, ten, or fifteen-minute increments, depending on firm policy and client directives. If you fail to bill your time, the firm cannot invoice the client, and the firm does not get paid. Thus, knowing how to bill time in a law firm is important for your and your firm's success.

What happens if you fail to bill your time?

If you fail to bill your time, the firm cannot invoice the client, and the firm does not get paid. Thus, knowing how to bill time in a law firm is important for your and your firm's success. As legal fees increase, clients have become more cost-conscious and tech-savvy. Consequently, clients are examining legal bills more closely ...

What is task based billing?

Corporate clients are making increased use of task-based billing. Task-based billing tracks a firm’s billing by litigation task. Each substantive activity is assigned a computer code that is pre-selected by the client. The coded invoice is then electronically sorted and analyzed, allowing an in-depth analysis of an invoice. Part of familiarizing yourself with client billing policies is learning and properly applying the myriad of specialized task-based billing codes unique to each client.

Why do courts not allow block billing?

Moreover, many courts do not permit block billing because it hinders effective reimbursement of attorney fees following a judgment. A more effective way of billing is to itemize each independent activity and its corresponding time.

What is block billing?

Block billing is the practice of listing a group of tasks in a block summary under a single time entry. For example: “Draft interrogatory requests; telephone conference with Dr. Brown re: expert report; summarize deposition of Mr. Smith; review and revise correspondence to opposing counsel. 7.3 hours.”

What is a description that is too brief?

A description that is too brief makes it difficult to assess the appropriateness of the task performed and the time expended. For example, perfunctory phrases like “file review;” “trial prep,” and “document review” do little to tell the story of what you did and why you engaged in a particular task.

Do you have to keep your audience in mind when recording time entries?

Like any document you prepare for another’s review, it is important to keep your audience in mind when recording time entries. You may know the individual reviewing your bills, such as the in-house counsel assigned to the file. Understand, however, that the review may not end there.

How to coerce a client to pay a lawyer?

Lawyers frequently try to coerce payment by asserting an “attorneys’ lien” on all or part of a former client’s case file pending receipt of payment. Depending on whether the case or transaction is over, this can leave the client in the unenviable position of having to pay the fee to get much-needed papers for an ongoing legal matter. However, in practice a client operating in good faith has little to fear. If the client has a need for the documents in an ongoing matter, and a good faith basis for not paying a portion of the fee, lawyers cannot withhold critical papers. Even after the attorney-client relationship is over, the lawyer has a duty to assist in an orderly transition to replacement counsel to minimize prejudice to his former client.

What to do if your lawyer is unwilling to discuss your bills?

If your lawyer is unwilling to discuss the bills, you should put your concerns in writing, and consider ending the relationship.

What is a lawyer's agreement?

Lawyers will often refer to agreements they have with clients, typically drafted by the lawyer at the beginning of the engagement, as evidence that a client agreed to certain payment terms. For example, there may be agreement as to hourly rates, staffing, or contemplated courses of action.

What happens if you don't raise your lawyer's billing concerns?

The downside of not raising billing concerns with your lawyer is substantial. You lose the chance to obtain a mutually-agreed upon reduction. The billing practice that offends you will no doubt continue. Finally, if the fee dispute ever gets litigated or arbitrated, your lawyer will claim that you consented to the disputed billing practice.

Why do lawyers give bonuses?

Despite this, lawyers often tell their clients they are entitled to a “bonus” over the agreed-upon fee because the matter has become more difficult than expected or because of an unexpectedly favorable result. It is common for such a lawyer to “negotiate” the increased fee in the middle of an engagement.

What to do if you get a high bill from an attorney?

There are steps you can take both during and after the engagement to communicate your concerns to your lawyer. Appropriate questioning of bills often leads to a mutually-agreed upon reduction, and can even strengthen the attorney-client relationship. Should all else fail, fee dispute litigation provides substantial relief from some relatively common examples of attorney overbilling, while protecting an attorney’s right to a reasonable fee. Ten points for clients to consider:

What is the code of professional conduct and responsibility for lawyers in New York?

In an effort to ensure that lawyers do not use superior experience or negotiating skills in drafting agreements with their clients, the Code of Professional Conduct and Responsibility that applies to all lawyers in New York State (other states have similar or identical codes) provides that an attorney “shall not enter into an agreement for, charge or collect an illegal or excessive fee.” DR 2-106 [A].

What percentage of lawyers are block billed?

Approximately 90 percent of law firm clients who are billed on an hourly basis are “block billed.” Block billing is an accounting technique whereby lawyers aggregate multiple smaller tasks into a single "block" entry, for which a single time value is assigned. In theory, the total time charged equals the sum of the duration of each discrete task. For example, after spending five minutes on a phone call, 35 minutes revising a junior associate’s draft motion and three minutes dashing off a brief e-mail to the client, the attorney should bill the client for seven-tenths of an hour. Unfortunately, in far too many cases, the final block-billed entry for these tasks will end up looking something like this:

How long does a lawyer have to submit a daily submission?

Now consider that, at least according to the California State Bar and nearly every state and federal court in the country, most lawyers' daily time submissions contain anywhere from thirty minutes to three hours of time billed to clients that was not actually worked.

How to minimize billable hour inflation?

In order to minimize billable hour inflation, every client should implement outside counsel guidelines that prohibit block billing, billable "hoarding" and excessive incremental billing. However, these are just a few of the practices that lead to overbilling and should cause clients to carefully scrutinize their monthly statements. Please visit our website (www.litigationlimited.com) to learn more about these and other types of law firm overbilling, and the strategies clients can use to help outside counsel improve billing practices and rein in billable hour inflation.

What is overbilling law?

Law firm overbilling - whether described as the euphemistic "bill padding" or simply "billing fraud" - is a serious problem that is seldom discussed and even less frequently addressed. But rare is the legal bill that does not include at least some "padding." In fact, according to the California State Bar, most bills are inflated at least 10-30 percent. This article describes three common ways legal bills are inflated and provides tips to help clients identify problematic billing practices.

Why block billing?

Another court observed that block billing allows lawyers to "claim compensation for rather minor tasks which, if reported individually, would not be compensable" and precludes the client "from determining whether individual tasks were expeditiously performed within a reasonable period of time because it is impossible to separate into components the services which have been lumped together." In re Leonard Jed Company, 103 B.R. 706 (Bankr. D. Md. 1989).

When billing by the hour, should they not use increments greater than one-tenth of an hour?

When lawyers bill by the hour, they should never use increments greater than one-tenth of an hour. Glover v. Heart of America Mgmt. Co., 1999 WL 540895 at *7, fn 8 (D. Kan 1999) (quarter hour billing... has been virtually extinct for some time"). Yet it appears that anywhere from five to ten percent of lawyers bill clients in unacceptably large chunks of time - usually in one hour or half-hour increments. This is neither honest nor reasonable, and constitutes outright billing fraud, as courts have held that “professional persons who charge their clients fees in excess of $80.00 per hour, based upon time spent, cannot, in all honesty and reasonableness, charge their clients for increments in excess of one tenth of an hour.” In re Tom Carter Enterprises, Inc., 55 B.R. 548, 549 (Bankr. C.D. Cal. 1985). By way of illustration, consider these billing entries from a $750 per hour partner:

Do lawyers double bill?

However, two-thirds of lawyers admit that "bill padding" occurs at their firms, one-third of lawyers openly double-bill clients, and more than half of all lawyers perform work not because the client or case demands it, but because the lawyer needs to bill more hours. See William G. Ross, Professor of Law, Samford University, Attorney Billing Ethics Survey (2006-2007). Clearly, clients must be proactive when it comes keeping billable hour inflation under control. This article summarizes some of the most common billing practices that lead to billable hour inflation.