The Attorney's Office Tools
other criminal and civil laws, common law, your state’s Rules of Professional Conduct, and the Disciplinary Rules prohibit you from doing so. For perpetually late-paying clients or seriously overdue balances, set up regular payment plans and promptly enforce the payment plans if a due date is missed. One effective way to avoid or cure this situation is to get a client’s signed authorization to bill the client’s credit card on a periodic basis. Also, having clients sign a promissory note is an excellent way to document a payment plan to pay an overdue balance. For a case that is already closed, consider offering a one-time discount as a way to settle the outstanding balance. Although you might substantially reduce your fee, you will not have to look at or think about this account again, and you are then free to pursue those cases that bring in money. If a client disputes your fees, consider arbitration. Te
Maryland State Bar Association and many county bar associations offer fee arbitration services specifically for this purpose. And, of course, mediation of a fee dispute is always an option. When all else fails, the next decision is whether or not to
professional, mature-sounding staff person with impeccable phone manners handle this call. When calling to discuss delinquent bills, be pleasant
and solicitous, and advise the client that you would rather not spend your time on collection issues. It is best to contact the client before the payment is so late that you have to be adversarial. One suggested opener for a collection call is simply to ask what the client’s intentions are with regard to the outstanding bill. If the reply is silence, let the client be uncomfortable about the silence. An embarrassed apology by a client is sometimes a good sign that the bill will be paid. If during the phone call, the client raises a legitimate complaint or a question about the bill, do not respond defensively. Rather, consider the comment and reduce the bill if appropriate or explain, clearly and simply, why the service was so performed or why the charge is correct. When in doubt as how to respond, advise the client that you will look into the matter and/or review their bills and will call them again soon; then be sure to do so. In Maryland, when you are collecting from your own
clients, you are not required to have a collection license and the Federal Fair Debt Collection Practices Act (FDCPA) does not apply. Nonetheless, not only would it be bad business to harass or intimidate a client into paying you, but
52 Trial Reporter / Spring 2010
sue. On one hand, a majority of malpractice defense lawyers and insurance companies will say, "Don’t!" On the other hand, you work hard for your clients and you deserve to be paid, and it just may be that you will not be paid unless you file suit. If you decide to file suit, it is usually best to send your account to a lawyer who has experience in handling collections for lawyers or law firms, to have that lawyer objectively look at your file and your attorney’s fees, and to send out an initial demand letter followed up by phone calls, if necessary. A surprising number of debtors pay as soon as they see a demand letter on law firm letterhead other than that of their own attorney. If you do decide to file suit, whether on your own or through another lawyer, be sure that your work in that case is without fault, your file is well documented, and your fees are reasonable in accordance with your State law. In Maryland, the factors of reasonableness of attorney’s fees are set forth at Maryland Lawyers’ Rules of Professional Conduct, Rule 1.5(a). Also, you will want to review all your billing statements for accuracy in describing tasks done and payments received. Further, you are entitled to assert an "attorney’s
lien" without having to file suit on your fees. Pursuant to Maryland Rule 2-652, you may assert a "retaining lien" on any papers of the client in the attorney’s possession until the attorney’s claim is satisfied9
or a "statutory lien" on any money payable or property passing to the client relating to
9 One caveat is: be sure that if you retain any papers of the client that said continual possession does not prejudice the client in any ongoing court proceeding.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76