A Law Firm Known For Getting Results

3 billing practices that can lead to legal malpractice lawsuits

People generally expect a lawyer to charge them quite a bit for the guidance and advocacy they provide. Most lawyers charge hundreds of dollars per hour for their services. They often require that their clients pay a retainer when they first begin discussing a legal matter.

Occasionally, clients start to question whether a lawyer has billed them appropriately. Billing issues are one of the top reasons that clients may eventually pursue legal malpractice lawsuits against the attorneys that they hire. Certain billing practices could lead to successful lawsuits that reimburse clients for an attorney’s misconduct.

Inappropriate handling of a retainer

A retainer is a lump sum paid to secure representation. A lawyer generally bills against the retainer initially and then asks for additional payment once they have exhausted those funds. Technically, the retainer does not yet belong to the lawyer until they have provided a certain amount of legal support to the client.

Therefore, they have to maintain the retainer separately from business and personal funds. Often, lawyers start separate financial accounts to hold a retainer until they finish providing support to a client. The commingling of a retainer with business funds or the deposit of retainer funds into a personal bank account could lead to a legal malpractice claim.

Rounding up what a client owes

Lawyers may charge an hourly rate and bill in smaller increments of time. They tend to track every email and phone call and then bill for the time provided to the client. However, sometimes lawyers inappropriately round up what they bill for when they invoice their clients. A two-sentence email might lead to them charging a client for half an hour of time, for example. Such practices can quickly lead to massive legal invoices for a client who has received minimal actual time with their lawyer.

Failing to provide detailed invoices

Attorneys generally need to account for every hour billed. They need to keep track of when they worked on the case and what services they provided. Clients should receive invoices that clearly outline the time commitments of the lawyer in reasonable increments. The failure to provide a thorough invoice detailing when and how a lawyer provided support could lead to legal malpractice claims.

Inappropriate billing practices are a common form of legal malpractice that can cost individual clients thousands of dollars. Filing a legal malpractice lawsuit is a difficult process but can be worthwhile for those affected by questionable attorney billing practices.

Archives