Have you ever gotten yourself or your company embroiled in litigation, whether it's defending against an old employee, or filing suit to collect money owed to you? What about evicting a tenant, or suing to protect rights under a contract? If you have been involved in these kinds of cases or any others - then you likely know how quickly costs can rise.
In Chicago (where I practice), the average hourly rate for an attorney is quickly approaching $300-350 per hour. Add to that, the costs for postage, travel time and overhead costs which only increase if you are working with a larger firm, such as those in Chicago or New York, it's easy to see how expensive it can get. However, there are plenty of things a client can do to help keep costs low and legal services need not break the bank. Keeping in mind that clients are really paying for the lawyer's time and their opinions, not all attorneys are trying to pick your pockets! In fact, despite common thoughts on lawyers, clients need to know that legal fees are often based upon market rates, costs for malpractice insurance and the going rate for office space and are not pulled out of thin air just to hurt their clients! Not all attorneys drive BMW's. That being said, it is a business, there are things that every client should know and questions that all clients should be asking if they want to keep their costs manageable.
First, before you call an attorney, gather your papers. For instance, gathering all documents, papers, pictures, invoices, or other "evidence" of your claim or position will save your lawyer time - which translates into lower fees. Do you have pictures? Putting them on a cd-rom is very helpful and allows your lawyer to put the photo files right on their computer. This is good for cropping, editing or preparing for trial.
Second, call an attorney in your city. Hiring an attorney that has an office close to the courthouse or within the city where your dispute lies, will also help. If I or any other lawyer has to travel an hour to get to court, that time generally goes right on the bill, and you will see it there. Most attorneys will outline in their retainer agreement if they charge for travel time. One way to handle travel time for the lawyer is to negotiate a lower travel rate. If, for example, your attorney charges you $250 per hour for legal services, why not ask the attorney to bill at $175.00 an hour for travel? They might negotiate with you and agree to the lower rate. It never hurts to ask, and your lawyer understands why you are asking it.
Third, know what your questions are and ask only those. Limiting correspondence to specific questions, emails, etc., can help you. When clients call to "chat", those conversations add up and directly translate into billable time. It's very hard for an attorney to separate the small talk from business talk in a phone call, and thus most attorneys bill for the entire conversation. Clients must be responsible for the amount of time they take to communicate with their attorney. If it takes an hour to answer your question, you are likely to see that hour on the invoice at the end of the month. While most attorneys aren't going to charge for a 30 second phone call to ask about something very simple, attorneys very typically bill in small increments (such as tenths of an hour), and jotting down a phone call is very normal for us lawyer-types. Thus, most calls are billable, unless otherwise agreed. When in doubt, just ask! Believe me, we don't like the "Am I getting charged for this?", but we understand it, and would rather have the talk on the front end, than after you have received an invoice and want to yell. No one likes yelling, and it's always better to understand each other.
Next, clients should ask questions such as, "How long do you think it will take?", or "What is the process you would use to handle such and such matter?" These questions are not rude. In fact, they really help open the dialogue between the client and attorney and help the attorney to give the client reasonable expectations. Additionally, clients must read their retainer agreement, because this usually spells out the billable tasks, and includes time for phone calls or emails, postage, courier costs or travel time. Attorneys must read everything, and so too must the client!
Finally, if you are extremely cost-conscious, think about creating a budget. Believe it or not, attorneys will respect their clients' budgets if need be. There is nothing wrong with setting up a litigation or case budget to try to manage costs and expectations. If a client only wanted to spend a small amount of money for a trial, I might be forced to decline the representation. So would plenty of attorneys. But, honestly, some would be happy to take them. That is what helps clients and lawyers decide if they should work together. If you want a trial on a $2000 budget, then most attorneys (this one included) are likely to decline. Being honest about your finances will help you.
So what if you can't afford to litigate? What about drafting a demand letter? What about paying for advice on a small claims case that you can handle yourself? That might be a better use of time and money. What if you have already hired your attorney and can no longer afford to pay on time and in full? Talk to your attorney and make a payment plan. What about using a credit card, or offering your services (if you have any) to your lawyer in trade? There are often times options to work out payment arrangements. Just being honest and keeping your word will help your lawyer and give him or her incentive to work with you on it. Just ask!
Overall, clients and attorneys should work together to reach goals, and with good communication, anything is possible! Most importantly, you need to outline your issues, be clear in what you are looking for, and ask questions. Bottom line: you can protect your rights on either side of a dispute, and having the right attorney to guide you is important.
For more information about my litigation practice, or other areas of law that I handle, feel free to email me at: alisalevin@yahoo.com, or call me at: 312-720-0082.
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