How to Resolve a Client Dispute in 6 Steps
Full Answer
Prepare a detailed and comprehensive itemization to your lawyer of the charges you dispute. Ask your lawyer to provide supporting documentation and materials regarding the charges you question. Allow your attorney a couple of weeks to respond and provide to you the information requested. Examine the documentation provided by your attorney.
Generally there are three situations where a client may dispute your fees: Fees paid to the lawyer. If a dispute arises concerning how much of a fee the lawyer deserves it can be heard by the fee dispute committee of the local county bar association. This committee then determines how much is appropriate.
Even if your business is extremely stable and you feel very satisfied with your work, a client dispute may be waiting just around the corner to spoil your week. However, there is a way to resolve client disputes in an amicable fashion. In fact, it is often possible to use a client dispute to improve your working relationship with a client.
After all, the last thing you want to do is get embroiled in a war of words with the very person who pays your bills. I have a simple rule of thumb when it comes to client disputes: never reply to an email within an hour of receiving it.
You should identify the particular date of the bills and mention the charges you are disputing. You can do it by using bullet points. Then you have to give your lawyer a full description of the bill you are disputing and explain why you are doing so. This explanation should be very much reasonable.
Perhaps the most common kinds of complaints against lawyers involve delay or neglect. This doesn't mean that occasionally you've had to wait for a phone call to be returned. It means there has been a pattern of the lawyer's failing to respond or to take action over a period of months.
Document And File Everything. ... Be Impartial And Consistent. ... Deal In Facts Only. ... Keep It Clear And Concise. ... Be Familiar With Applicable Laws. ... Focus On The Issue. ... Be Your Organization's Own Worst Critic. ... Keep It Confidential.More items...•
Examples Of Overbilling While the act of overbilling can simply be a lawyer overcharging for services, there are numerous ways this can occur, for example: Padding a bill: This occurs when a lawyer lies about how much time was spent on a matter. By overstating time spent, the bill becomes inflated.
Dennis BeaverThe attorney does not return phone calls in a reasonable amount of time, and;In a meeting with the client, if the lawyer is being very short, taking phone calls, trying to re-schedule, not giving enough time to the client, does not listen, ignores what is asked or is not answering questions.
Send your complaint Email [email protected] with your written complaint or by attaching the completed form.
The five strategies for conflict resolution are avoiding, accommodating, compromising, competing, and collaborating. The parties can choose one or a combination of different types depending on what they need from the process and the perceived strength of their argument.
There are many types of dispute resolution processes, but arbitration; mediation; and negotiation are the three most common types of alternative dispute resolution. Negotiation is the least formal type of ADR.
Types of disputeArbitration.Competition.Construction.Employment.Enforcement and Asset Recovery.Financial services.Fraud.General commercial.More items...
To start the process, complete a fee arbitration request form from the local bar association and submit the filing fee. Include information about the attorney's fees and costs and explain why you believe the attorney's fees are excessive. Attach copies of any documents requested on the form.
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.”
Unprofessional or unethical behavior can include:Arriving late or failing to show up for important meetings, or missing court dates.Making decisions of importance about your case without discussing it with you first.Missing filing deadlines, filing paperwork incorrectly or filing the wrong paperwork with the court.More items...•
The underpinning of this holding is that where the contingency has not occurred , the lawyer has no present right to the fee. Further, the committee found that a lawyer has an ethical obligation to avoid prejudice to the client’s interests.
The lawyer shall promptly distribute all portions of the property as to which the interests are not in dispute.
Finally, a lawyer may not file, or threaten to file, a Form 1099-C in order to induce a client to pay a delinquent fee.
First, the lawyer may directly negotiate the fee dispute with the client. However, if the client is represented by counsel as to the fee dispute, the lawyer must comply with Rule 4-4.2, the rule regarding communications with represented parties, and communicate with the client’s lawyer. Also, The Florida Bar offers a fee arbitration program aimed ...
The rule states that a lawyer shall not represent a client if the representation will be “materially limited … by a personal interest of the lawyer.”. Rule 4-1.7 (a) (2). If the representation would be limited in such a way, a conflict exists.
The lawyer is not required to remit to the client funds that the lawyer reasonably believes represent fees owed. However, a lawyer may not hold funds to coerce a client into accepting the lawyer’s contention.
Thus, if a client is disputing all or part of the lawyer’s fee, the lawyer must retain the disputed funds in trust and move any undisputed portion to the lawyer’s operating account. However, as the comment suggests, the lawyer may not simply allow the disputed funds to remain in the trust account indefinitely.
There are certain jurisdictional limits regarding the maximum amount of damages that a person can seek in small claims court, such as $5,000.
Mediation is less like a trial and more like a discussion. Both parties appear before a neutral trained mediator. They may all be in the same room or they may be put in different rooms as the mediator moves back and forth. The goal is to reach a resolution that both parties are satisfied with without having to go to court.
Even if a local bar association does not offer a program, you may be able to arbitrate your dispute. This process usually involves one or more neutral individuals who are typically trained in arbitration and alternative dispute resolutions. The neutral arbitrators hear both sides of the case and make a decision at the end. Both parties usually agree to make the arbitrator’s decision binding. This process may be less expensive and less time-consuming than going to court.
Lawyers have flexibility in their agreements and may choose to charge a particular client a lower rate or not to charge after a certain amount has been incurred in the case. If you do not like the arrangement with that lawyer, you can always hire a different one. If you have received a bill after you signed your fee agreement, ...
However, there may be a minimum fee to participate, and the mediator may be allowed to take a certain percentage of the fee that is in dispute. Even with these drawbacks, you may incur fewer expenses this way than if you had to litigate the case, and the issue may be resolved more quickly than going to court.
If you remain unsatisfied and believe the fees charged are not correct, reasonable or appropriate, advise the attorney of your ongoing objections in writing. Provide the lawyer with a set period of time to revise the bill or tell your counsel that you will take additional steps.
(Attorney state licensing agencies can take a number of different names: disciplinary administrator, attorney regulation counsel, and similar identifiers. The Supreme Court in your state can direct you to the correct agency.)
Obviously, you do not want to spend more than is necessary when it comes to obtaining legal representation. You definitely do not want to be overcharged by legal counsel. If you feel that you were billed improperly by your lawyer, there is a course of action available to you through which you can dispute attorney fees.
The true resolution of a dispute for our purposes is to bring it to a conclusion that best benefits your business. That might require an acknowledgement of fault and an apology, an adjustment to the existing agreement, the increase in your scope of work, or a parting of ways.
Because let’s face it — if a client calls you up on the phone and starts yelling, you may end up regretting what you say in the heat of the moment. But if a client sends you a somewhat heated email, you can take advantage of your ability to take a deep breath and walk away.
If you choose to take the easy route and brush glaring issues under the carpet, it will only serve to undermine the work that you do. Similarly, if a client is unhappy and you are aware of the fact but choose not to address it, you are likely to find that working with client becomes more and more difficult.
An apology serves as the foundation of resolution — in order to fix the problem you must first acknowledge its cause. It’s not something you should dwell on or make a big deal out of — it simply serves as a sign of your respect for the client and your willingness to address and resolve the matter at hand.
In fact, it is often possible to use a client dispute to improve your working relationship with a client . In this post I want to outline the six step process you should take whenever you have to deal with an unhappy client.
If talking with your attorney about a fee dispute fails to solve the problem, you can request fee arbitration: Fee arbitration is an out-of-court hearing in which a sole arbitrator (or a panel of lawyers and nonlawyers) not involved in the dispute will listen to what you and your lawyer have to say, examine the fee agreement, ...
Arbitration is usually faster and less expensive than going to court, and you can do it without hiring another lawyer. In most cases, the lawyer must agree to arbitration if you request it. More information about Mandatory Fee Arbitration.