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    Wisconsin Lawyer
    August 05, 2008

    Communicate Consistent Expectations about Payment for Services

    The expectation of payment for services rendered by a law firm for its clients should begin during the new-client intake process.

    Brenda A. Majewski

    Wisconsin LawyerWisconsin Lawyer
    Vol. 81, No. 8, August 2008

    Communicate Consistent Expectations about Payment for Services

    by Brenda A. Majewski

    The expectation of payment for services rendered by a law firm for its clients should begin during the new-client intake process.

    The written fee agreement between the lawyer or law firm and the client is the first opportunity the lawyer has to state the terms and expectations for payment for services rendered. While some lawyers may find the discussion of fees distasteful, the majority of lawyers are in business to collect fees for services rendered. Besides the written fee agreement, verbal communication between the lawyer and the client is another key component in getting paid. Supreme court rules require the lawyer to "maintain communication with a client concerning the representation."

    The client should know how often he will be billed, what items he will be billed for, and what the firm's expectation for payment will be. Rates for paralegals, associates, and partners should be differentiated. The client should be given an estimate of a total bill, and scenarios that may require charging of higher fees should be discussed. SCR 20:1.5 (a) states that a lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses. Making a client aware of the professional code of conduct that lawyers must abide by is a good communication tool also.

    Brenda A.   Majewski

    Brenda A. Majewski is the administrator for Kohn Law Firm S.C., Milwaukee. She is a former president of the Wisconsin Association of Legal Administrators and currently chairs the national education committee of the Commercial Law League of America. She is a frequent speaker on law office management and marketing topics.

    If slow payment is a concern to the lawyer or law firm, a decision to offer discounts based on fees paid within a certain timeframe may encourage speedier payment. A client should never bear the expense of "training" a newer lawyer. Some hours are not recoverable by billing. Remove those items from a fee invoice before it is presented to a client. Regularly issue bills or billing statements during the representation; a bill is also a tool to communicate with your client.

    If an initial retainer is paid, the fee agreement can state at what point additional funds will be required. If the firm maintains an "ever green" policy and bills whenever a retainer balance goes below a certain amount, the client should be aware of that practice. The client also should be aware at what point the firm would seek more drastic measures such as withdrawing from representation for nonpayment, with the firm following all of the requirements necessary.

    Supreme court rules also identify resolutions for attorneys whose clients dispute the application of advance fees received. Instead of spending additional hours that could be billable elsewhere, it may be more beneficial to review the dispute that the client is questioning and to settle the dispute through arbitration.

    If you have taken all of the above preventive measures to preserve good client relations, and maintain proper billing procedures within your firm, and the client still has an issue with the bill presented, you have some additional considerations before determining if your billing needs an adjustment, or you need to turn up your negotiation skills to stand by your bill. Is this likely to be a one-time association with the client? Is this client likely to refer additional work? Is this the first billing concern raised in a longstanding relationship? Those answers might indicate whether a discount should be applied. For the scenario posed, asking why the client is seeking a discount may be an opportunity to ask for additional work if the fees charged are reviewed.


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