recent cases where an attorney sues the client for fees

A recent article, "Chicago Firm Sues Client Over $747,500 in Fees" reports that Chicago-based Freeborn & Peters has sued its former client, Vehicle Safety & Compliance LLC of Memphis to collect $747,515 in unpaid legal fees plus interest and the cost of bringing the lawsuit.

Full Answer

What is the most common complaint against lawyers?

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.

What is it called when lawyers take clients money just to keep it?

With a contingency fee agreement, your attorney will only get paid when you recover compensation —by settlement or court judgment—in your personal injury case. By Curtis Lee. In most kinds of law practice, attorneys receive compensation for the legal services they provide.

What is it called when a lawyer drops a client?

Withdrawal from representation, in United States law, occurs where an attorney terminates a relationship of representing a client.

Can you sue for legal fees in the US?

Although the “American Rule” generally prevents parties from recovering their legal fees, there are exceptions. Two of the most common exceptions are attorney-fee statutes and attorney-fee provisions in contracts. Certain federal and state laws allow you to recover attorney fees if you win your lawsuit.

Why should a contingency fee not be used?

Contingency fee cases can sometimes be seen as a risk, because the lawyer does not get paid unless they win the case. However, the risk is lower if you are more likely to win your case. With a lower risk, the more likely you are to find an attorney willing to take the case.

What percentage do most lawyers take as a contingency fee?

33 ⅓ percentWhile the percentage of the fee varies by lawyer, typically contingency fees are 33 ⅓ percent of the case if a lawsuit is not filed and 40% if a lawsuit is filed.

What should you not say to a lawyer?

9 Taboo Sayings You Should Never Tell Your LawyerI forgot I had an appointment. ... I didn't bring the documents related to my case. ... I have already done some of the work for you. ... My case will be easy money for you. ... I have already spoken with 5 other lawyers. ... Other lawyers don't have my best interests at heart.More items...•

Can a lawyer drop you as a client?

A lawyer may withdraw because the client has not paid the agreed fee; however, a lawyer must not withdraw from representation of a client on the grounds of non-payment of fees, unless the client is given a reasonable opportunity to obtain another lawyer who will (1) either be able to secure an adjournment of the matter ...

What is it called when a lawyer doesn't do his job?

Legal malpractice is a type of negligence in which a lawyer does harm to his or her client. Typically, this concerns lawyers acting in their own interests, lawyers breaching their contract with the client, and, one of the most common cases of legal malpractice, is when lawyers fail to act on time for clients.

How can I get out of paying court costs?

Ask your lawyer about getting any court fees waived (set aside or forgiven). If you do not have a lawyer, you can still call the local legal aid office to see if they can help you get any court fees waived or you can ask the judge to waive some or all of the court fees by filling out a form called a fee waiver request.

Can you claim back legal fees if found not guilty?

A non-legally aided defendant is entitled to recover their legal costs, but only to the limit of the legal aid rates if they are acquitted ONLY if they have applied for and been refused legal aid.

Can legal costs be recovered as damages?

A claimant who has to incur legal costs against a third party as a result of a wrong committed by the defendant can recover those costs as damages from the defendant, but only to the extent that they are recoverable on a standard basis assessment.

What is client perjury?

When a lawyer has actual knowledge that a client has committed perjury or submitted false evidence, the lawyer's first duty is to remonstrate with the client in an effort to convince the client to voluntarily correct the perjured testimony or false evidence.

Why do solicitors hold your money?

There are two significant reasons why probate solicitors hold money for an extended period after probate. These reasons are estate complexity and legal issues.

Why do lawyers hold money in escrow?

It bridges the trust gap between contracting parties. Law firms regularly act like an escrow agent in legal transactions by holding funds in the client account until completion.

What is zealous representation?

By providing zealous representation, an attorney makes sure that the authority to decide a defendant's guilt or innocence stays where it belongs: with the judge or jury. Duty Bound. Lawyers are bound to zealously advocate for all clients, rather than just innocent ones.

Question (s) For Expert Witness

1. What is your background in legal malpractice, specifically in divorce law?

Expert Witness Response E-227684

My legal experience is in divorce work. I review family law matters every day and have gotten into and out of cases close to trial. I am on the peer review committee for a state attorney grievance commission and in this capacity, I determine whether the attorney violated the rules of professional conduct.

How many legal malpractice cases are counterclaims?

According to the American Bar Association, an estimated 2/3 of all legal malpractice claims come about as counterclaims to suits for fees. Suddenly, the case is no longer about how much time you spent on the case multiplied by your hourly rate.

What happens if you don't follow the proper protocol?

If you have not followed the proper protocol, the court denying your application may be the least of your problems. It could also sanction you for your noncompliance, or require you to disgorge the fees you’ve already been paid. Tips for Fee Disputes.

How to avoid a problem with retainer?

Avoid the problem altogether by getting an appropriate retainer from the client, and have the client replenish the retainer as needed. If the client cannot afford your retainer, chances are she cannot afford your services. Bill at regular intervals. Waiting to bill until the completion of the matter can invite problems.

Do you have to disclose malpractice insurance?

Third, regardless of the merits of a malpractice claim, the fact that you have been sued for malpractice will likely have to be disclosed on your next malpractice insurance application. Guess what effect that could have on your rates?

How to avoid fee disputes?

The best way to avoid the risks inherent in fee disputes is to plan ahead. Always put your fee agreement in writing. Consider placing a provision in your fee agreement that requires any fee dispute to be submitted to binding arbitration. (See our previous post concerning the enforceability of an arbitration clause in a fee agreement.) Clearly communicate your expectations of timely payment to your client. Request that your client deposit funds in your trust account to cover anticipated costs and fees. And request that your client replenish your trust account when the balance gets low. (As a practical matter, an inability to afford a retainer at the outset of the representation may foreshadow an inability to pay down the line.) Bill your services at regular intervals to avoid sticker shock.

How does pursuing a former client affect your LPL insurance?

In sum, pursuing a former client for unpaid fees could affect your LPL insurance coverage in one of two ways: (1) an exclusion of a counterclaim for malpractice, and (2) an increase in your premium after you report a counterclaim or potential claim for malpractice.

How many malpractice cases have their genesis?

An estimated 40-60% of malpractice claims have their genesis as counterclaims in suits for unpaid fees. The best defense is a good offense, right? Your fee suit can quickly become less about your hours or rates and more about your actions in the underlying case, which your former client and his attorney will place under a microscope and scrutinize. That might not be the full extent, either. A grievance, a negative online review, or an unsavory social-media post isn’t outside the realm of possibilities.

When should you bring a claim for unpaid malpractice insurance?

In short, you should wait to bring a claim for unpaid fees until the statute of limitations for any potential counterclaim expires. Even then, though, you should be mindful that you may still be forced to incur costs and fees associated with defending a counterclaim for malpractice. And to add insult to injury, you may be looking at increased premiums for malpractice insurance.

Can you sue a former client for unpaid fees?

Before you consider suing a former client for unpaid fees, you should review your malpractice insurance policy. As noted, a claim for unpaid fees is frequently met with a counterclaim for malpractice. Some carriers include provisions in LPL policies that exclude or limit coverage if a claim for unpaid fees results in a counterclaim for malpractice. So a claim for unpaid fees not only puts you at risk of being subjected to a counterclaim for malpractice, but also puts you at risk of having to defend a counterclaim for malpractice without the insurance coverage that you paid for.

Can a former client recover unpaid fees?

In other words, you wouldn’t be able to rely on the statute of limitations as a defense, and your former client wouldn’t be able to recover damages in excess of the amount of your claim for unpaid fees.

Can you counterclaim for malpractice?

While the incurrence of costs and fees in defending a counterclaim for malpractice may be enough to deter you, consider another drawback. You’ll have to disclose a malpractice claim to your malpractice carrier, which may increase your premiums for malpractice insurance the following renewal period.

Who sued Steve Firestone?

Lewis started the legal action first, by suing the former client, Steve Firestone, for $500,000 in claimed unpaid fees plus interest. Lewis ’s bill for Firestone’s divorce was $627,000, and he sought an extra $253,000 in interest, for a total of almost $900,000. Firestone had already paid Lewis $378,000.

Who was Lewis' lawyer?

Lewis said his lawyer, Michael P. Freije, had released him from appearing, although he had been subpoenaed. Freije told Judge David S. Schell there had been a misunderstanding, but Schell was clearly upset and ordered Lewis to appear in DiMuro’s office the following week as well as pay the highly unusual fifth court-imposed sanction.

How much did Lewis pay Firestone?

Lewis agreed to pay Firestone more than $102,000 — probably not the result Lewis was hoping for when he sued Firestone for $500,000.