Red flags should go up whenever a prospective client – especially one from out of state – asks you to assist in transferring or collecting a large amount of money. It might be a scam. The internet, email and electronic funds transfers have made online scams easier to perpetrate and harder to detect. Avoid trouble by (a) using checklists, (b) scrutinizing every detail of the proposal, and (c) understanding how your bank holds and distributes funds.
Think twice before sending past-due fee accounts to a collection agency. There is a risk that confidential client information will be disclosed in the process. And when clients are hit with collection actions, they often respond by alleging malpractice as a defense or counterclaim.
Money is at the root of most attorney-client disputes – many of which ripen into malpractice claims and bar grievances. Lawyers who sue for unpaid fees often face allegations of malpractice. The best defense is to avoid fee fights in the first place through (a) good communication, (b) diligent efforts, and (c) following best practices for billing and collections.
You deserve to be paid for your work. But if you’re like most lawyers, you don’t relish talking with your clients about fees. Do it anyway. A simple misunderstanding can ripen into a malpractice claim or bar grievance. Protect yourself by (a) charging a fair fee, (b) putting your agreement in writing, and (c) having a system for time-keeping, billing and collections.