Attorneys, being highly trained and licensed, charge fees for their advice and representation. Clients who retain attorneys on an hourly basis will generally pay a retainer fee to establish representation. From this retainer, attorneys will typically bill the client regularly and inform the client when the retainer has been exhausted or is nearly so, and that additional funds will be required. However, the client needs to monitor the fees being charged, as well as the services being provided, and be aware of any unreasonable fees being charged for the services reportedly offered.
Your written retainer agreement will include the hourly fees that will be charged, which may vary depending on the work provided by partners, associates, or paralegals. For example, a partner may charge $500 per hour, an associate less per hour, and a paralegal less than an associate. Expenses will also be charged for printing costs, subpoena fees, expert fees, travel, lodging, and even meals in some cases.
It is not uncommon for a client to suspect that he is being overcharged for specific legal services or expenses, or even for services that may not have been provided. For instance, being charged hundreds of dollars for a simple document that probably took a few minutes to draft or complete, when a paralegal could easily have performed it, rather than the partner or associate who charged for hours. File review is a standard charge, but if little has been done on the case in the past month, charging six hours of review is likely unreasonable, as is charging five hours for a 5-minute court phone call.
What If You Suspect Unreasonable Billing?
Should you suspect that you are being overcharged, there are steps you can take before taking formal action.
- Review your written retainer agreement for the fee structure, billing practices, and costs. Compare it with the billing statement.
- Request a detailed account of the charges and expenses, the hours worked, the services provided, and who performed the service. Occasionally, what is being charged as a cost is not included in the retainer agreement.
- If you see or suspect discrepancies, schedule a meeting with your attorney to review the billing and to discuss your concerns or suspicions.
In a case where your attorney will not discuss the fees and costs being charged, refuses to compromise or feels that the billing is entirely accurate and needs to be paid, you have other options.
If Communication With Your Attorney Fails
As a client, you have other avenues to resolve your fee dispute.
- Mediation. A mediator is a neutral third party who will seek a compromise and a mutually acceptable resolution. This is a less expensive option that avoids litigation and can often resolve the dispute quickly.
- Arbitration. Your retainer agreement may contain an arbitration clause that addresses disputed fees and costs. An arbitrator is also a neutral third party who may be a retired judge or another attorney. Although less costly than litigation, arbitrators will often request an up-front retainer fee and charge their services. Arbitration will usually be binding with no avenue for appeal unless you can show fraudulent conduct by the arbitrator.
- Fee arbitration programs. You can also utilize the fee arbitration offered by your local or state bar association (MBA) at a minimal cost. Arbitrators are attorneys who are experienced in fee dispute resolution.
- File a complaint with the Board of Bar Overseers. You may suspect fraudulent, unethical, or illegal conduct by your attorney. In that case, you can file a complaint with the BBO, which will investigate the conduct of your attorney that may lead to disciplinary action.
- Litigation. This should be a last resort, and to be considered if your lawyer’s unethical and negligent conduct led to an unfavorable outcome. An experienced legal malpractice attorney will have to determine if your attorney’s actions were malpractice and that it is more likely than not that you would have had a favorable outcome but for the attorney’s negligence.
How to Avoid Legal Fee Disputes
You can avoid most fee disputes by taking these steps:
- Always have a written retainer agreement that clearly outlines the fee arrangement and what costs are to be charged.
- Discuss the fee structure and billing practices with your attorney, and whether the support staff or the attorney will be performing some of the services.
- Carefully review each month’s billing statement and highlight those charges or services with which you have concerns or questions.
- Communicate with your attorney about the legal services being performed and the fees being charged
An attorney may reduce fees and costs in the interest of remaining on good terms, if the communication is fruitful. It will also alert the attorney to the fact that his or her client is closely monitoring what is being charged.
Consult a Legal Malpractice Attorney from Burns and Jain
While not all fee disputes should be litigated or even give rise to a malpractice claim, unethical conduct that caused you substantial economic harm and led to an unsatisfactory result in your case may be grounds for a legal malpractice claim. Call our office for a consultation about your possible malpractice claim.