Question for our attorneys

[kevin47881]

Due to personal circumstances I had the use of a law firm for about 2.5 months, ending mid-May.

The signed contract stated that the rate for the attorney would be $www.ww and $xxx.xx for the paralegal. All rates would be billed in quarter hour increments. No issues with the contract.

Here's the rub...the paralegal sent me an email sometime around early April indicating the hourly rate was increasing from $www.ww and $xxx.xx to $yyy.yy and $zzz.zz. I sent a responding email stating the increase was unacceptable and would not be honored as the contract did not have a provision for increasing the hourly rate.

While reviewing the final bill, the increased rate was the multiplier. How is it recommended this be addressed? Due to my perceived poor representation (calls/emails not returned timely, arguing about who said what even when written proof provided, general poor attitude, etc) the bill really puts a burr under my saddle. In the big picture the increase adds only a couple hundred dollars but the entire situation just doesn't seem appropriate if not an attempted breach of contract.

Thank you for your input.

P.S. thank you to one of the attorneys on this board who provided valuable guidance on another issue with this same firm.

 

[SCCutler]

I suggest speaking directly, and calmly, with the partner (or managing shareholder) with whom you dealt in the past. He or she should want to resolve it consistent with your prior agreement.

 

[Obi Heed Kenobi]

Second what Spike says.

Were it me, you'd get a certificate to a nice restaurant, too.

We all make mistakes or screw up - but it's on us to set it right.

 

[kevin47881]

I suggest speaking directly, and calmly, with the partner (or managing shareholder) with whom you dealt in the past. He or she should want to resolve it consistent with your prior agreement.

I agree, Spike. Just want to make sure there is a leg to stand on when going in to discuss. If what they did is an acceptable practice in the trade (no swipe intended), that alters the conversation. I infer from your comment the change in hourly rate mid-stream is not S.O.P.

Thank you.

 

[Obi Heed Kenobi]

I agree, Spike. Just want to make sure there is a leg to stand on when going in to discuss. If what they did is an acceptable practice in the trade (no swipe intended), that alters the conversation. I infer from your comment the change in hourly rate mid-stream is not S.O.P.

Thank you.

I don't know if there's any practice in this regard or not - speaking for myself, though, I wouldn't do it without consent (and, frankly, I'd be uncomfortable even asking).

And tell the partner that you had another attorney say that he thinks you've got a nice gift certifcate coming.

 

[kevin47881]

I don't know if there's any practice in this regard or not - speaking for myself, though, I wouldn't do it without consent (and, frankly, I'd be uncomfortable even asking).

And tell the partner that you had another attorney say that he thinks you've got a nice gift certifcate coming.

Thanks, David.
I'll print off your post as exhibit A wrt the gift certificate.

FTR, I have no problem with screw ups; hell, we're all human. They did represent me successfully in court and that's what they were hired to accomplish so no complaints there.

 

[AdamZ]

Kevin, It is not unusual for attorneys to increase fees from time to time just as your phone or cable company may increase their rates. The nature of legal services are that they are often performed over a long period of time. That said the firm should have incorporated something into their fee agreement in that regard. Our firm's agreement says that we review our rates on an annual basis and may increase our rates in January of the year. The client then has good notice.

I once represented a client in a legal matter that took over 5 years to resolve. We didn't raise our fee during that period but did in the 6th year. It would be unreasonable to expect an attorney to not raise rates ever. We are subject to the same economic forces as any other business. BUT the client needs notice and notice that the rates may increase should be included in the Fee Agreement. Personally I would not raise rates for any client within one year of taking on representation of that client.

Spike is on target. A good calm talk with the attorney in charge of the case should result in a reasonable result.

 

[SkyHog]

Kevin, It is not unusual for attorneys to increase fees from time to time just as your phone or cable company may increase their rates. The nature of legal services are that they are often performed over a long period of time. That said the firm should have incorporated something into their fee agreement in that regard. Our firm's agreement says that we review our rates on an annual basis and may increase our rates in January of the year. The client then has good notice.

I once represented a client in a legal matter that took over 5 years to resolve. We didn't raise our fee during that period but did in the 6th year. It would be unreasonable to expect an attorney to not raise rates ever. We are subject to the same economic forces as any other business. BUT the client needs notice and notice that the rates may increase should be included in the Fee Agreement. Personally I would not raise rates for any client within one year of taking on representation of that client.

Spike is on target. A good calm talk with the attorney in charge of the case should result in a reasonable result.

Adam:

If you had a contract with a client that did not mention fee increase, but instead said "I will supply legal services for $xx per hour" and nothing more, would the lawyer not be responsible to hold to that rate?

 

[JeffDG]

Adam:

If you had a contract with a client that did not mention fee increase, but instead said "I will supply legal services for $xx per hour" and nothing more, would the lawyer not be responsible to hold to that rate?

He would. He would also be within his rights to say "You know, we need to amend that agreement. After August 1, I'd like to propose $xx+yy. If that's not acceptable, I'm afraid you'll need to find other representation."

In the OPs case, where a proposed fee increase was met with an objection, then there's certainly no "meeting of the minds" on an amendment to the contract, so it the lawyer continued to provide services in the face of that objection, I'd posit that he's SOL in terms of collecting the higher rate.

 

[kevin47881]

Kevin, It is not unusual for attorneys to increase fees from time to time just as your phone or cable company may increase their rates. The nature of legal services are that they are often performed over a long period of time. That said the firm should have incorporated something into their fee agreement in that regard. Our firm's agreement says that we review our rates on an annual basis and may increase our rates in January of the year. The client then has good notice.

I once represented a client in a legal matter that took over 5 years to resolve. We didn't raise our fee during that period but did in the 6th year. It would be unreasonable to expect an attorney to not raise rates ever. We are subject to the same economic forces as any other business. BUT the client needs notice and notice that the rates may increase should be included in the Fee Agreement. Personally I would not raise rates for any client within one year of taking on representation of that client.

Spike is on target. A good calm talk with the attorney in charge of the case should result in a reasonable result.

Six years? Good grief, I can't imagine. I do understand the fluidity of market conditions and the need to stay in the black so that makes sense.
We will definitely sit down and have a discussion. I suspect counsel will encourage that meeting as the bill is being held sans payment until we can come to an amicable agreement.

As a point of reference to my initial comments regarding poor communication: the final hearing was May 10, 2010. On or about June 10 I contacted the office inquiring as to the signed final decree (I cannot honor some of the grounds of the MDA without the singed decree). The paralegal stated it was not yet received from the court. Inquiring as to the normal time frame, she indicated it varied from court to court (makes perfect sense). Fast forward to July 6 and I contact the court clerk office to inquire. The clerk stated the signed decree was submitted to counsel on May 11, 2010 (things that make you go hmmmmm). I hung up with the clerk and contact the paralegal. She stated that she emailed me the signed decree on May 10. When I inform her the decree was not available until May 11, there was silence. I then inquired that if she sent it May 10, why did she state in June that it had yet to be received by their office. Again, deafening silence. This may have have been an honest over sight as I'm not the only client they are dealing with. However, this was just the final example of things not going as I had hoped.

 

[AdamZ]

Adam:

If you had a contract with a client that did not mention fee increase, but instead said "I will supply legal services for $xx per hour" and nothing more, would the lawyer not be responsible to hold to that rate?

He would. He would also be within his rights to say "You know, we need to amend that agreement. After August 1, I'd like to propose $xx+yy. If that's not acceptable, I'm afraid you'll need to find other representation."

In the OPs case, where a proposed fee increase was met with an objection, then there's certainly no "meeting of the minds" on an amendment to the contract, so it the lawyer continued to provide services in the face of that objection, I'd posit that he's SOL in terms of collecting the higher rate.

Nick Jeff is essentially correct. The attorney client relationship is somewhat unique. it is indeed a service contract but due to the nature of the relationship and the importance of the relationship ( unlike say a landscaper) either party needs the ability to back out. A client should not be forced to stay with an attorney they have lost confidence in nor should an attorney be required to continue to represent a client with whom the relationship has broken down.

However AND THIS IS IMPORTANT the attorney must at all times protect the clients interests until such time as the client has reasonable time to secure other counsel or the court permits the attorney to withdraw if the matter is in litigation. I would ad that the attorneys fee agreement should account for the ability of either party to withdraw.

 

[AdamZ]

Six years? Good grief, I can't imagine. I do understand the fluidity of market conditions and the need to stay in the black so that makes sense.
We will definitely sit down and have a discussion. I suspect counsel will encourage that meeting as the bill is being held sans payment until we can come to an amicable agreement.

As a point of reference to my initial comments regarding poor communication: the final hearing was May 10, 2010. On or about June 10 I contacted the office inquiring as to the signed final decree (I cannot honor some of the grounds of the MDA without the singed decree). The paralegal stated it was not yet received from the court. Inquiring as to the normal time frame, she indicated it varied from court to court (makes perfect sense). Fast forward to July 6 and I contact the court clerk office to inquire. The clerk stated the signed decree was submitted to counsel on May 11, 2010 (things that make you go hmmmmm). I hung up with the clerk and contact the paralegal. She stated that she emailed me the signed decree on May 10. When I inform her the decree was not available until May 11, there was silence. I then inquired that if she sent it May 10, why did she state in June that it had yet to be received by their office. Again, deafening silence. This may have have been an honest over sight as I'm not the only client they are dealing with. However, this was just the final example of things not going as I had hoped.

Kelvin two thoughts occur to me. First If this were my firm I sure as heck would want to know about my paralegals representations to you regarding when the Decree or Order was received. I'd suggest you inform your attorney of his paralegals representations.

Second it does not seem that you are challanging the hours that the lawfirm is charging for but rather the hourly rate. May I suggest that you pay for the hours worked at the hourly rate that you agreed to pay, that being the lower rate. I would proabably wait until after your meeting with the attorney just so you retain some leverage.

 

[kevin47881]

Kevin two thoughts occur to me. First If this were my firm I sure as heck would want to know about my paralegals representations to you regarding when the Decree or Order was received. I'd suggest you inform your attorney of his paralegals representations.

Second it does not seem that you are challanging the hours that the lawfirm is charging for but rather the hourly rate. May I suggest that you pay for the hours worked at the hourly rate that you agreed to pay, that being the lower rate. I would proabably wait until after your meeting with the attorney just so you retain some leverage.

You are correct wrt hours worked vs hourly rate. Excellent advice as always, Adam. Thank you.

 

[flyersfan31]

I say SUE 'EM!!!!!!

 

[kevin47881]

Update:

After outlining my concerns with the attorney, the final bill was waved (a few hundred dollars). That should cover the cost of a meal or two

Thank you to all who provided guidance.

 

[AdamZ]

Excellent!