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Let’s get right to the heart of
the matter and continue the
discussion on lawyer fees.
Studies at Harvard have
shown that the mere mention of
the phrase “lawyer fees” will
cause a grown man or woman to
take to bed for several days. My
guess is that disputes over
hourly billing are the primary
cause of this ailment.
The vast majority of
lawyer bills are calculated on
an hourly basis.
Unfortunately, the
hourly billing arrangement tends
to create a tension between the
lawyer and client. Contrary to
popular opinion, most lawyers
take the job seriously and try
to accomplish the best result
for the client. Typically, the
more time and attention a lawyer
devotes to a matter, the better
the result. And the costlier the
product.
The client, of course,
also wants the best result. But
get this -- the client wants the
job done for the least amount of
money possible.
What can be done to
minimize the conflict in this
process, or at least minimize
the potential for serious
disagreement when your lawyer
hands you the bill?
The first step is a
candid and straightforward
opening discussion between
lawyer and client about fees and
billing. The second step is a
written fee agreement.
The state of Wyoming has
adopted a set of laws entitled
the Wyoming Rules of
Professional Conduct. Rule 1.5
states that lawyer fees must be
reasonable. There are a number
of factors which determine
whether a lawyer’s fee is
reasonable, including the
lawyer’s experience, reputation
and ability, the nature and
complexity of the project, and
of course, the time billed for
the project.
The law does not require
that a fee agreement be in
writing (except for contingency
fees), but it is a wise idea.
The fee agreement should contain
information about the fee --
including the hourly rate or
other basis for the fee --
describe the nature of the
project, and provide details
about the lawyer’s billing
procedures, including costs
(such as court reporters, expert
witnesses, appraisals, etc.) and
disbursements such as long
distance telephone charges, copy
costs, travel expenses, etc.).
Now that you are under
contract with your very own
personal lawyer, what additional
shocks should you expect?
Abraham Lincoln once
said that a lawyer’s time and
advice are his stock in trade.
Although no one is really sure
what he meant by that, my guess
is he was trying to warn you not
to be surprised when you look at
your first bill and the charges
for each of those telephone
calls with your lawyer last
month. Your first thought is
that this must be a mistake. It
is not a mistake.
We already know that
most lawyers bill their time by
the hour. (Hourly rates in Teton
County seem to range from about
$125 per hour to $200 per
hour.) Most lawyers also have a
minimum billing time, typically
6 minutes (1/10th of an hour),
10 minutes or 15 minutes, which
usually applies to telephone
calls.
Telephone calls are
important. Lots of work is
accomplished on the phone and it
helps make the lawyering process
more efficient. It is not
unusual for a lawyer to get
between 15 and 30 calls per day.
Your lawyer, Neal Able,
is working on a particularly
important and difficult project
for you. It requires intense
concentration. Every phone call
Neal receives for another client
requires that he turn his
attention to some other matter,
perhaps retrieving a file,
taking notes, looking up a
statute, giving direction to the
secretary or paralegal.
Although perhaps
involving no more than 5 or 10
minutes of time, multiply that
by the many phone calls Neal
will receive during the day and
hopefully you can understand the
necessity for billing telephone
calls in minimum increments of
time.
Billing for travel time
is another sensitive issue.
Wyoming is about the best place
in the world to call home. But
getting from one Wyoming town to
another, even during the warm
months, is very time consuming.
Our capital, Cheyenne,
is 420 miles from here. Neal
Abel needs to go to Cheyenne to
appear before the Wyoming
Supreme Court to handle the
appeal of a case in which you
are involved (which, by the way,
he won for you at trial but
which the other party has
appealed). It will literally
take one day to get there and
another day to get home (unless
you fly him there in your
Learjet). Should Neal not bill
you for travel time, two days on
the road, and bill only for the
two hours directly involved in
the hearing with the Wyoming
Supreme court? If so, he would
quickly be out of business.
Should Neal discount his hourly
rate for travel time?
The lawyer-client
relationship is typically
intense and complicated.
Communication is the key
to making the relationship work.
And don’t forget to hug Neal
every now and then. If he bills
you for the time, fire him.
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