Disputes with Clients
For various reasons, clients get into disputes with their attorneys. Sometimes clients believe the lawyer charged too much money. And sometimes clients believe the lawyer gave them bad advice or mishandled their responsibilities. Because of the potential for these disputes, and because of the need to ensure that a lawyer doesn’t take advantage of a client who depends on her, various rules and best practices guide how disputes can be avoided and how to handle them when they arise.
Why should you read this post about disputes with clients?
You are upset with your lawyer and want to know what happens next.
You are a lawyer and are interested in learning how to clearly communicate with clients.
Your case isn’t going well and you have to blame somebody and you want to know if berating and threatening your lawyer will help.
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Fee Disputes
Lawyers are expensive! And so clients may be concerned about a lawyer’s bills or seek ways to avoid paying a lot of money. Clients in litigation are also often in stressful situations, that may make them afraid of spending a lot of money. Or they may have gotten into litigation because they, for whatever reason, do not reliably pay their bills. This makes disputes with clients over money a familiar subject in the legal world.
One way to mitigate this issue is for a lawyer to let the client know from the beginning that litigation is expensive. While it is often difficult to estimate the total cost of a case, telling the client that legal fees alone could cost in the high five figures or well into the six figures may let clients who cannot afford those amounts to decline the engagement, rather than rack up a bill they cannot afford. And as the case progresses, a lawyer should let the client know estimated costs of various elements of a case before actually incurring the costs so that the client can know what she is getting into rather than being surprised.
Just as important as it is to make these disclosures to a client, it is also important to put these disclosures in writing. This is because clients often say that they do not remember being told how expensive a lawyer’s work would be, or they may cite one specific time out of context in which the lawyer mentioned a lower dollar amount. Writing out what the estimated fees are is a good way to make clear to a client what the costs will be so they do not feel surprised later on and so that, when they get a big bill, they can know that they had notice.
Another thing that lawyers do to avoid fee disputes is to require clients to pay a retainer. This is a refundable amount of money that clients pre-pay to a lawyer instead of just paying bills after work is performed. There are strict rules that govern how a lawyer may hold on to client money before it is earned, but generally a lawyer can use these funds to pay herself if the client does not pay a bill. This may help avoid the situation where a lawyer needs to chase a client to pay an unpaid balance. And by requiring a retainer at first, clients who are unable to pay do not begin incurring charges that they will later still be unable to pay.
Managing Expectations
Many client disputes arise because the client’s expectations were not met. And one way to address this is for a lawyer to frequently advise a client on what to expect. This means both frequently communicating with the client, and giving the client notice of the likely, and even some unlikely, things that can take place. Litigation is unpredictable, and while it is impossible for a lawyer to tell a client how a case will proceed, it is helpful for a lawyer to share as much as possible to keep a client from surprises.
One of the hardest parts of managing expectations is letting a client know when they are not likely to succeed. Even good cases can lose, and often good cases take a long time and are frustrating and difficult. A client who believes she is right and entitled to compensation may be surprised when things do not quickly go her way, and so hearing this news from her lawyer early may prevent her from thinking the lawyer did something wrong when the case does not yield a swift victory.
Lawyers often have to do this in writing, since clients may not remember these disclaimers at the time they are made. Then, if things do not go as hoped, a lawyer can remind the client that there were no guarantees of success.
Resolution
Often disputes between a client and attorney manifest through tough phone calls or emails. While sometimes these words are blowing off steam, they may reveal a fundamental breakdown of the relationship.
Sometimes, especially harsh words, a dispute with a client means the client fires the lawyer or the lawyer fires the client. A client needs a lawyer she trusts, and if she does not believe the lawyer shares the same strategy or is handling the case well or is sensitive to her concerns, it is likely for the best she moves on. Similarly, a lawyer may not want to keep working with a client she feels she cannot effectively serve.
Sometimes for fee disputes, the client and attorney must go to arbitration or court to resolve a dispute about the amount of money owed. Attorneys often try to avoid these disputes by getting paid up front or by keeping funds in a retainer account first before doing any work.
And sometimes clients and attorneys litigate against each other if there has been an issue of professional malpractice. Those cases are difficult and, if mediation cannot resolve them, end up being litigated in court. But not everything a lawyer does wrong, or failure to meet expectations, or bad result constitutes malpractice. As a result, malpractice attorneys often guide clients to learn whether it is worth pursuing a malpractice claim.
Another forum for disputes with attorneys is for a client to report the attorney to a disciplinary authority, such as the state bar association. These organizations investigate failures of an attorney to abide by ethical rules, but not general dissatisfaction with an attorney’s services.