by Linda Oligschlaeger
There was a time when most of the general public held a high regard for doctors, clergy, lawyers, and most all professionals. Back then a client wouldn't even think about disputing a lawyer's fee, but then most were simple flat fees. That day is long gone. There was also a time when most clients took pride in paying their just debts. If the means to pay was an issue, debts would often be paid by bartering in some fashion. Not all clients today maintain that same pride in paying their way.
Today, clients are not shy about making it known if they feel they've been unfairly charged by their lawyer. They're not likely to simply pay the bill especially when they perceive little value for the service. And, clients are not as intimidated by collection efforts even if it means facing a lawsuit especially if they believe they are right. Clients have armed themselves with information about their options, which may include a disciplinary complaint or malpractice action. The fact is: unresolved fee disputes contribute to the gloomy image of the legal profession, and that one reason why lawyers' should care.
Common Reasons Why Fee Disputes Happen
Betrayed, let down, taken advantage of, cheated, just out for money - these are harsh words often used by clients about lawyers and about lawyers about clients in fee disputes. So, how does a lawyer-client relationship deteriorate to this extent?
Some common reasons that may cause clients to dispute lawyers' fee:
- Lack of a written fee agreement spelling out exactly how the client will be charged, or not clearly communicating the fee structure to the client
- Poor service
- Little perceived value - the outcome was not worth the cost
- Not billing regularly resulting in a "surprise" bill
- Not aggressively working on the client's case
- Perception that the lawyer has purposely "run up" the bill
What can (should) you do when a client disputes your fee?
The wrong answer is to ignore the issue even if the client has paid in advance. Suing clients for unpaid balances could also be the wrong answer. (Risk managers advise against suing for fees.)
In the Bar's recent economic survey, the majority of lawyers responded that they handle fee disputes by negotiating with the client, which often results in an adjustment of the fee. That might be one of the right answers in some situations. Slow payment or the lack of payment by a client could also signal a client's concern about the fee. When a client disputes a fee or is slow to pay, it's certainly a time to review the file thoroughly and to do some self-examination. You may conclude that you poured your heart and soul into the matter, and the fee is justified. You might conclude that the client may have at least some justification for a fee adjustment. Or, you might conclude that you're on firm ground, but you would welcome a neutral view without consuming a lot of time or expenses.
You might consider referring your client to the Bar's fee dispute resolution program as an alternative to either suing your client or risking a disciplinary complaint or malpractice action. Fee dispute resolution programs are offered by The Missouri, BAMSL, and KCMBA at no cost to either party. The Missouri Bar and BAMSL programs offer mediation and binding arbitration, while the KCMBA program offers non-binding arbitration heard by a hearing panel. For more information, log on the Bar's website at www.mobar.org, or contact Linda Oligschlaeger, the program administrator at The Missouri Bar by calling 573/638-2258 or by e-mail: lindao@mobar.org.
What You Can Do
The next time you hear a cruel lawyer joke or you're teased about being a lawyer at a cocktail party you might consider what you as an individual can do. One by one you can help chip away at the dismal image of the legal profession by providing the best service possible to your clients, billing fairly, and resolving fee disputes when they occur. When it comes to fee disputes, both lawyers and clients do have options. And, lawyers should care.
Linda Oligschlaeger is the Membership Services Director at The Missouri Bar, and among other duties, she administers the Fee Dispute Resolution Program.