Local Orange County Attorney Michael S. LeBoff Provides The Nine Tips.
In the December 2020 edition of the Orange County Lawyer magazine, Michael S. LeBoff, a partner at Klein & Wilson, in Newport Beach, California, has authored an article entitled “Increase Collections and Avoid Costly Fee Disputes: Nine Practical Tips.” We now summarize some of his suggestions on how to avoid collection disputes with respect to attorney’s fees and costs:
1. Sign and return your fee agreement—provide a fully signed duplicate copy of the retainer agreement to the client.
2. Be wary of conflict waivers—tailor conflict waivers to specific situations; a lack of an adequate waiver can result in a fee compensation denial (at worst) or a quantum meruit recovery (even if the waiver is not found to be non-egregious in nature).
3. Know what is in your fee agreement—review agreements over time; follow it as far as billing practices; fix any ambiguities before any dispute arises.
4. Avoid surprises by proper budgeting and communication—avoid client surprises; prepare a comprehensive budget upfront and update the budget; get client approval in writing for expensive or extraordinary projects.
5. Do not overpromise or underdeliver—manage client expectations; explain risks such as a potential losing case; explain risks along the course of a case.
6. Address problems early—“Unlike scotch, billing issues do not get better with age”; have a frank talk with a client who gets behind, understanding why and trying to resolve, if possible.
7. Separate from problem clients—clients on third or fourth attorneys (for example) are a red flag; refusal to make a retainer deposit is a warning sign.
8. Invoices should be clear and concise: detail is better; invoices must contain separation as far as fees and costs; invoices must set forth the amount, billing rate, and work descriptions for entries.
9. If you sue, don’t forget the Mandatory Fee Arbitration Act (MFAA) Notice—a collection action will likely be dismissed if the attorney does not send the required MFFA notice; clearly state the amount due in the MFAA Notice.
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