Category: Legal Fee Disputes

New Year’s Resolutions To Avoid Discipline

New Year’s Resolutions To Avoid Discipline

Here are some New Year’s resolutions to help you avoid disciplinary inquiries in your practice. Unhappy clients are the source of disciplinary complaints. Responding to a complaint swallows up time and money. The time spent responding to a complaint/grievance is unproductive time.

1.Make sure you have malpractice insurance. Insurance often has coverage for responding to client grievances. Check your policy limits and any exclusions. Insurance companies will refer you to their outside counsel, who are almost always excellent.

2. Do not display anger in communications with clients, especially when those communications are about unpaid legal fees. Anger triggers disciplinary authorities to take a closer look at the grievance. Losing your temper will cost you money and maybe more.

3.Archive text messages with clients. We all keep emails, but you should find a way to keep text messages with clients. Or never text with clients.

4. Use a carefully drafted engagement letter to set forth how you will charge the client and when you may withdraw. The failure to use an engagement letter is often a contributing factor in discipline cases. Where there is no engagement letter, you can be subject to a claim that you were not aware existed. “Lawyer failed to file my lawsuit.” The engagement letter could have protected you if you were only engaged to do estate planning.

5.Try your best to communicate rejections in writing. When you reject a client’s claim, responding in writing is often the best approach. The writing (email or letter) gives you a defense to the claim that you missed the statute of limitations.

6. Do not sue for fees if small amounts are involved. A lawsuit can generate a counterclaim or a grievance that will be a waste of your time. If you sue for a large balance, make sure you have another lawyer review your work before you file suit.

7. In any disputes with the client, explain why you think the client should take the action that you recommend. Tell the client that you are making a recommendation of settlement or other action to protect the client.

8. If there is a big problem with the client’s case, put it in writing. A written explanation that the case may be barred by the statute of limitations or caselaw will protect you when that client decides to file a grievance. Example: “we regret to inform you that your case appears to be barred by the statute of limitations.”

9. Follow the Rules of Professional Conduct. Read them every now and then and seek advice from another lawyer before you take some action.

10. Listen to your gut instinct. Your gut will often tell you that a prospective client will not work with you in a productive fashion. Clients with unrealistic expectations are the source of most grievances and lawsuits.

If you have an ethics question or just want to chat about an issue or a problem client, do not hesitate to contact us. We can be reached at 312-357-1515. We can often be of help to a you before trouble starts. Having a fresh set of eyes look at the problem can be very helpful.

Ed Clinton, Jr.

http://www.clintonlaw.net

Law Firm Lacks Standing To Sue Client’s Insurer For Fees

Law Firm Lacks Standing To Sue Client’s Insurer For Fees

The moral of the story here is: get it in writing if you wish to collect your legal fees.

The opinion in Mintz Fraade Law Firm, P.C. v. Federal Insurance Co., 2021 2021 NY Slip Op 02607, Appellate Division, First Department is short and to the point. The key language:

“Plaintiff law firm lacks standing to recover its legal fees under the insurance policy, to which it is not a named party (Miller & Wrubel, P.C. v Todtman, Nachamie, Spizz & Johns, P.C., 106 AD3d 446 [1st Dept 2013]). Plaintiff was merely an “incidental beneficiary to its client’s malpractice insurance policy” (id.). Thus, the motion court properly found that plaintiff’s sole recourse was against the insured, its client, and not its client’s insurance provider.

Plaintiff’s argument that it had a direct contract with defendant on account of the various correspondence between itself and one of defendant’s employees also fails. Indeed, these letters merely confirm, consistent with the policy’s requirement that the insurer’s consent of the insured’s choice of counsel not be “unreasonably withheld,” that defendant consented to the insured’s continued retention of plaintiff.”

Comment: if you want to sue for fees, sue your former client. First, make sure you have an engagement letter. Second, make sure that you have detailed billing records that justify such an invoice. Third, make sure you review the file carefully so you do not draw a counterclaim to your lawsuit.