The Attorney's Office Tools
Get Paid, Not Burned
Mary Ellen Flynn, Esq.
outstanding balances; (2) include retainer agreement terms to protect your interests; (3) successfully use and enforce an "evergreen retainer;" (4) effectively bill clients, and (5) collect your fees. Please note that this article conforms to Maryland Case Law, Code and Lawyers’ Rules of Professional Conduct. Troughout the article, you will see references to Maryland citations. If you practice in a state other than Maryland, I urge you to consult your own state law where I cite to Maryland law.
The First Contact Right from the very beginning, you should be screening
T
he goal of this article is to help you, the sometimes over-worked and under-appreciated lawyer, get paid for the excellent work you do on behalf of your
clients. Over the past twenty years, I have represented close to one hundred attorneys and law firms in the collection of their accounts receivables. Trial attorneys representing clients on an hourly basis are particularly vulnerable to clients owing them high balances (sometimes over $100,000.00) due to a wide range of factors, including the emotional and personal nature of clients’ cases and the way attorneys fees skyrocket during the period immediately prior to trial and/ or depositions. Often- times, the month or so prior to trial and/or depositions is the last month that the attorney has any interaction with the client. Additionally, upon the case ending, a client with a large outstanding balance may be disinclined to pay because fees are higher than the client expected and/or the client may actually be or perceive himself/herself to be in the worst financial state of his/her adult life. Also a client may be adversely emotionally impacted by the intense pressure of litigation, the give-and-take required in negotiation, and/or the reality that this chapter of the client’s life is concluded. Sometimes, the client may be dissatisfied with the outcome of the case, the limitations of the legal process, and/or at the attorney’s representation of him or her (usually for no legally- justifiable reason). In this article, I will suggest how to: (1) take precautions to lessen or remove the possibility of clients running up high
48 Trial Reporter / Spring 2010
your clients. If, during that first phone call and/or meeting, a potential client sounds as if he or she might be a difficult person to work with, then trust me, he or she will be even worse to have as a client. If a prospective client complains about your consultation fee, then expect the complaints to be numerous and worse when that client receives your bills. Also, trust the instincts of your staff; if a staff person says the caller is a difficult person on the phone, this should carry significant weight in your decision to speak with the person and/or in your consideration to take on a case. As you have heard many times, but a reminder does no
harm, there are certain prospective clients who send up red flags from the first meeting or first phone call, and they are the ones whom you should not represent. Tese clients include those who have sued their prior attorney(s); who have refused to pay outstanding fees to prior attorney(s); and who have been or are being sued by an attorney or another professional for nonpayment. Do not ignore the warning signs. If you avoid the problematic clients, you will have more
time and energy for your more worthwhile clients, and you will be more available to take on better clients. On the other hand, if you choose to ignore the warning signs, then you will regret having been retained by that client. When you are retained by a client, be sure to obtain
the following information right at the beginning: home and work addresses and phone numbers; social security number; date of birth; and name, address, and telephone number of a contact person for the client. Tis information will prove to be invaluable if you have the unenviable task of taking steps to collect your fee from your client.
The Retainer Agreement Always, always, always, have a written retainer agreement,
and this tip applies even for longtime clients and small matters. When written correctly, clearly, and in simple but detailed language, the retainer agreement protects you, the attorney, in so many ways. Further if you are representing a
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