“What can I do if I feel my lawyer overcharged me?”
Full Answer
1. Contact your lawyer and request an itemised bill. If you suspect that your lawyer is overcharging you, you should first speak to your lawyer about it. The lawyer may be able to address your concerns such that you do not need to spend further time, energy or money pursuing the matter.
If you have been presented with a legal bill that seems unreasonably steep for the amount of work carried out, you may be concerned that your lawyer is overcharging you. Alternatively, you may feel that your lawyer has not been transparent about the types of fees that are incurred and how fee payments should be made.
The LPR sets out some practices that lawyers must abide by when charging their clients. In particular, a lawyer must: Inform the client of the basis on which fees for professional services will be charged, and of the manner in which those fees and disbursements are to be paid by the client;
The itemised bill will record the amount of time that has been expended on doing research for your case, communicating with you or third-parties, and representing you in court. In some cases, after looking at the itemised bill, you may conclude that the total lawyer fees charged are reasonable.
When you hire a lawyer, the legal fees that lawyers typically charge can be split into two categories: Professional fees; and. Disbursements. Professional fees are fees charged by a lawyer for providing professional legal services, and they can be structured as flat fees or hourly fees.
How lawyers usually bill for work. Generally, firms will request a deposit into a client account before work on the case begins. A portion of the deposit sum may be earmarked for disbursements or professional fees. A bill may be sent to you on a monthly basis for the work undertaken in the previous month.
The CDR scheme is an attractive dispute resolution method because its objective is to resolve the dispute amicably, and as swiftly and cost-effectively as possible.
The American Bar Association, which didn’t respond to requests for comment, advises members to abide by Rule 1.5 (a) of Professional Conduct. “A lawyer,” the rule states, “shall not make an agreement for, charge or collect an unreasonable fee or an unreasonable amount for expenses.”.
The red flag is “block billing” — a way of assigning one charge for several separate tasks.
By packaging all the work into one bill over a monthly billing period and not documenting each day’s work, some lawyers inflate bills, said SIB Legal Review VP Joe DiGuglielmo.
There are at least 10 ways for an attorney to overcharge a client who is paying an hourly rate for legal services. Phantom Billing. “Phantom billing” occurs when an attorney invoices a client for work that was never performed. An audit of the client’s file is necessary to detect phantom billing. Unnecessary Work.
In Maryland, most retainer agreements expressly provide that the attorney or law firm will submit monthly invoices. Even if this language does not appear in the retainer agreement, the Maryland attorney or law firm still has a professional duty to submit regular invoices in order to comply with the ethical obligation “to keep the client reasonably informed of the status of his case”. See the Maryland Lawyers’ Rules of Professional Conduct at Maryland Rule 19-301.4; and Attorney Grievance Commission of Maryland v. Roth, 428 Md. 50, 74 (2012) (concluding that an attorney violated Md. Rule 19-301.14 (a) (2) regarding communications with clients by failing to provide the clients with monthly billing statements).
A simple flat fee (plus expenses), agreed to up front, is often best for the client — because it ensures that the cost won’t go over a certain amount . And lawyers often accept a flat fee for simple matters, such as uncomplicated wills or real estate closings.
Poorly itemized bills. Your bill should explain what your attorney was doing during each time segment billed. What to do: Insist on a detailed bill. Vague terms such as “research” and “preparation” should be explained.
Billing increments. Most law firms bill in six-minute increments. Protest if a firm wants to bill in 15-minute increments even when, say, only one minute is spent on your case.
If you are not satisfied with your bill and can’t get the lawyer to alter it, contact your state’s bar association to find out how legal fee disputes are resolved in your state. Most states offer some form of arbitration. State bar associations can be found through the American Bar Association Web site ( www.abanet.org/barserv/stlobar.html ).
Travel time. Most attorneys bill their full hourly rate for time spent in transit for a case. Savvy clients ask that travel time be billed at half the attorney’s usual rate… or that the attorney be required to use travel time for which he bills you to work only on your case.
Attorneys doing nonlegal work. Your lawyer should not bill you for time that he spent filing, scanning, assembling documents or doing other clerical work. What to do: Tell your attorney that he should have handed off these clerical tasks to a legal secretary. Legal secretaries’ salaries are part of law firms’ overhead and should not appear on your bill. (Do expect to be billed for paralegals’ time, however, at lower rates than for lawyers.)
Some lawyers claim terms are not at all negotiable, but there usually is some room for flexibility or even creative compromise, assuming that the lawyer wants your business. Example: Offer to pay a certain amount that you both consider reasonable as a guaranteed minimum flat fee for the expected amount of work. In addition, agree to pay an hourly fee at a lower-than-usual rate if the matter becomes more complicated than expected — for instance, if you are an executor and a beneficiary contests your execution of the will.
Every state has an agency responsible for licensing and disciplining lawyers. In most states, it's the bar association; in others, the state supreme court. The agency is most likely to take action if your lawyer has failed to pay you money that you won in a settlement or lawsuit, made some egregious error such as failing to show up in court, didn't do legal work you paid for, committed a crime, or has a drug or alcohol abuse problem.
If your lawyer does not respond, or subsequent meetings or conversations are not fruitful, consider suggesting mediation to work out your communication problems if you still want this lawyer to represent you. A bad deskside manner doesn't mean that the lawyer isn't an excellent lawyer, and it can be difficult to find a new one in the middle of a case.
If you lost money because of the way your lawyer handled your case, consider suing for malpractice. Know, however, that it is not an easy task. You must prove two things:
A common defense raised by attorneys sued for malpractice is that the client waited too long to sue. And because this area of the law can be surprisingly complicated and confusing, there's often plenty of room for argument. Legal malpractice cases are expensive to pursue, so do some investigating before you dive in.
If the lawyer is unresponsive and the matter involves a lawsuit, go to the courthouse and look at your case file, which contains all the papers that have actually been filed with the court. If you've hired a new lawyer, ask her for help in getting your file. Also, ask your state bar association for assistance.
If you can't find out what has (and has not) been done, you need to get hold of your file. You can read it in your lawyer's office or ask your lawyer to send you copies of everything -- all correspondence and everything filed with the court or recorded with a government agency.
A lawyer who doesn't return phone calls or communicate with you for an extended period of time may be guilty of abandoning you -- a violation of attorneys' ethical obligations. But that's for a bar association to determine (if you register a complaint), and it won't do you much good in the short term.