Jul., 2011 - Mecklenburg County Bar

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Paying the Piper By Camille Stell Last year, international law firm Squire Sanders (now Squire Sanders and Hammonds) sued a client for $1.2 million in unpaid legal fees. Not surprisingly, their client retaliated with a legal malpractice lawsuit. In addition to the $1.2 million in unpaid fees, the firm is now running up its own legal bills by hiring an outside law firm to represent them. It’s hard to imagine how a law firm can allow a client to run up so large a tab. The case exemplifies the advice you might receive from your malpractice provider to avoid suing your clients for unpaid fees. Law office management experts were appalled that collections were allowed to languish to the point that the client owed $1 million. To avoid this scenario, there are a few rules you should follow: 1. Screen clients effectively on the front end. Look for red flags of financial difficulty that would prohibit a client from being able to pay you. Also, look for red flags that would prohibit a client from wanting to pay you. Do they bash the legal system? Are they cynical of lawyers? Do they protest each and every charge? 2. Keep a close eye on account receivables. When you see a client is more than 30 days past due, reach out with a phone call or e- mail. Offer a quick status report on their matter, and then ask about the late bill. Don’t be embarrassed to make the call. You have earned your fee; it’s easier to collect one month late than six months late. 3. Get help. Delegate responsibility to your accounting department or a support staff member to keep you apprised of collections and to provide you with a report when clients are late with payments. You may also want the first reminder to come from your staff, but don’t separate yourself completely from the billing process. It’s easy for a client to avoid your staff’s request for payment, make it hard for them to stiff you for the money they owe you. 4. Send timely bills. It’s easier for a client to avoid paying you if they don’t get the result they want. For this reason, you’ll also want to keep your accounts receivable up to date. Also, don’t wait too long after getting a good result to final bill your client. They are the most pleased with your work on the day you give them the good news. Rule 1.5 of the North Carolina Rules of Professional Conduct guide a lawyer’s conduct with regard to fees. Lawyers need to be explicit with clients about fees. Put everything in writing so there will be no misunderstanding later. However, it is inevitable that sometimes a client will fail to pay his bill for legal services in a timely fashion or will simply refuse to pay because he is unhappy with the outcome of his case. In these circumstances, the lawyer may feel his only recourse is to sue the client for the cost of the unpaid services. Before you decide to sue a client for fees ask yourself the following questions: 1. Is the amount collectible? You cannot get fees from a client who is broke. You might get a judgment against the client, but you will probably also find yourself defending a malpractice suit. 2. Is the amount substantial? Is the amount of money owed significant enough to cover the costs, loss of reputation, time and aggravation associated with a malpractice suit? If not, you may be better off letting it ride and claiming the tax deduction. 3. Did you obtain a good result for the client? If not, it is more likely than not that the client will blame you. The jury hearing the malpractice suit might think that you not only failed to do a good job for the client, but that you are greedy as well. As the Your partner for disability insurance. Ken Hudson, Disability Insurance Agent LAWYERS MUTUAL public becomes increasingly cynical about the legal profession, it is less likely that jurors will sympathize with an unpaid lawyer who sues his client for fees after an unfavorable result. 4. Has another attorney gone through the file to see if there are any weak links that could lead to a malpractice claim? If you are going to take a chance on being sued for malpractice, you will want to be sure that you can argue that the counterclaim for malpractice is without merit. An independent peer review can help you decide whether the attorney fees are worth pursuing in light of the risk. If, after answering these questions, you still decide to pursue a lawsuit against your client, you must first comply with Rule 1.5 of the Rules of Professional Conduct regarding the fee dispute resolution program. Please contact the MCB at 704/375-8624 to learn more about the fee dispute process. If you have any questions about what to do if you find yourself in this situation, you should contact a claims lawyer. Camille Stell is the Director of Client Services for Lawyers Mutual. With over 20 years of experience in the legal field, Camille has worked for law firms as a paralegal, legal recruiter and business developer. Contact Camille at 800/662.8843 or Camille@lawyersmutualnc.com. For a limited time only, LAWYERS INSURANCE and the NC Bar Association bring you the BEST disability offering you are EVER likely to see. No embarrassing health questions – Guaranteed Issue up to $4,000 per month. Policy issuance within a week. True Own Occupation definition of disability. Only proof of income is required. Contact LAWYERS INSURANCE – your partner for your disability insurance. LAWYERS INSURANCE: FOR YOUR OFFICE, HOME AND LIFE. 919.677.8900 800.662.8843 LawyersInsuranceAgency.com www.MeckBar.org July 2011 5
CMS Students Lunch with Lawyers Photo: Charlotte-Mecklenburg Schools students and their attorney mentors enjoyed the view of uptown Charlotte atop the Mecklenburg County Courthouse. Volunteer attorney mentors and student mentees of the Lunch with a Lawyer (LwL) program recently celebrated the end of the 2010-11 school year by participating in a tour of the Mecklenburg County Courthouse and a mock trial. Maura Chavez of the Trial Court Administrator’s office guided the visiting students and attorneys through the courthouse while providing an overview of the local judicial system. The tour included first-appearance courtrooms, traffic court, judicial offices and introductions to District Court Judge Matthew J. Osman and Superior Court Judge W. Robert Bell. The student mentees, who are now rising ninth graders, have expressed an interest in a career in the legal profession. Judge Albert Diaz, founder of the LwL program, facilitated a mock trial following the tour. The case — involving an iPhone stolen from a student in the school cafeteria— allowed each attending mentee to participate in some role of the judicial system. From swearing in witnesses, delivering opening and closing statements, examining witnesses and testifying on the stand, each student received a first-hand look at courtroom operations. The mentors and mentees concluded their day with lunch where they discussed summer plans and their expectations for high school. The LwL mentors have visited their assigned mentee’s school once per month for lunch throughout the school year. LwL mentors serve as positive role models for diverse eighth grade students. Since the program’s inception in 2006, more than 330 students and their attorney mentors have participated in the program. The selected students, who are recommended by their principals and exhibit outstanding scholastic achievement, are considering a future legal career. Diversity Committee Seeks Attorney Mentors for 2011-12 School Year Dear Colleagues, The MCB Special Committee on Diversity is currently seeking volunteer attorneys who are interested in making a difference in the life of a young person by mentoring a student in the Lunch with a Lawyer program. Through a partnership with Charlotte-Mecklenburg Schools (CMS), lawyers will serve as mentors to rising eighth graders throughout the 2011-12 school year. Mentors will meet with their paired mentee at least once a month for lunch, serving as a positive role model and providing the student with a window into the legal profession. Participating students, who are recommended by their principals and represent a broad range of ethnic and socioeconomic backgrounds, are considering a future legal career. All new volunteer attorneys will attend a program orientation in July 2011 to discuss program expectations and to review tips for establishing a beneficial mentoring relationship. Additionally, new volunteer attorneys will be required to submit to a background check before being matched with a CMS student. The program officially celebrates its kick-off with a luncheon in mid-August prior to the new school year. Here, students, their parents and school administrators will meet their attorney mentors and listen to guest speakers from the community during the kick off luncheon. The MCB has received overwhelmingly positive feedback from lawyers and students who have participated in this program in the past, many of whom have formed relationships that will endure for years to come. If you or your colleagues are interested in serving in the 2011-12 Lunch with a Lawyer program, please contact Judge Albert Diaz (albert.diaz@ca4.uscourts.gov or 704/333-8025) or Judge Rickye McKoy-Mitchell (Rickye.mckoymitchell@nccourts.org or 704/686-0141). Sincerely, Hon. Albert Diaz, Immediate Past Co-chair, MCB Special Committee on Diversity Hon. Rickye McKoy-Mitchell, Co-Chair, Bench, Bar and Community Subcommittee of the MCB Special Committee on Diversity 6 July 2011 www.MeckBar.org
Page 1 and 2: MECKLENBURG COUNTY BAR 438 Queens R
Page 3 and 4: From The President Robert C. Dortch
Page 5: CLDC Hosts Sixth Class of Clerks Ch
Page 9 and 10: 51 Attorneys Sworn-In at Spring 201
Page 11 and 12: MCB Volunteer Lawyer Program 2011 P
Page 13 and 14: Join a Section and Connect with Col
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Jul., 2011 - Mecklenburg County Bar

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