Vol. 32, No. 6, 8. Tips for Avoiding and Successfully Resolving Fee Disputes.

• Author: By Richard G. Schneebeck

Wyoming Bar Journal

2009.

Vol. 32, No. 6, 8.

Tips for Avoiding and Successfully Resolving Fee Disputes

Wyoming LawyerIssue: December, 2009Tips for Avoiding and Successfully Resolving Fee DisputesBy Richard G. SchneebeckAttorneys can unfairly become the focal point for their clients' legal frustrations, and clients can have legitimate complaints about the quality and cost of legal services they receive. Difficult economic times increase the potential for friction between attorneys and clients, which in turn increases the possibility of a dispute erupting over the lawyer's fees. (fn1)

Lawyers can reduce the potential for becoming entangled in a fee dispute by clearly communicating with their clients and by carefully evaluating their billing and client counseling practices.(fn2) Remember also that, in any fee dispute hearing, the attorney bears the burden of proving the reasonableness of the fee by a preponderance of the evidence.(fn3) Lawyers who do become involved in fee disputes can increase the likelihood of a favorable resolution by maintaining careful records of their client contacts and of the work they perform. Accordingly, avoiding fee disputes and favorably resolving them requires effort before the attorney accepts the representation, throughout its course, and at its conclusion.

Before Agreeing to Represent a Client, Confirm that the Proposed Fee is Reasonable and Clearly Communicate with the Client about the Representation.

Many fee disputes arise before the attorney actually accepts the representation of a client. Their origins often include: Attorney overreaching or client misgivings about the reasonableness of the fee. Before agreeing to represent a client, critically evaluate whether your hourly rate or other proposed fee arrangement is reasonable. Wyoming's Rules of Professional Conduct provides a list of eight nonexclusivefactors lawyers should consider.(fn4 )Objectively examining the proposed fee in light of these factors can assist the attorney in developing a fee agreement that is fair for the lawyer and the client. Failing to discuss the fee with the client. Discuss the proposed fee with the client, particularly if the circumstances of the case are unique or justify a higher fee. Candidly explaining the amount of the fee to the client - and documenting that discussion - can curtail subsequent disputes concerning the reasonableness of an attorney's fee. Not listening carefully to the client's problem. Fee disputes typically concern the client's perception that the attorney failed to deliver the promised legal service. In these cases, the attorney often provides a service that the client later claims he did not want. At the beginning of a representation, the attorney should identify the client's needs, goals and expectations, and confirm that the attorney understands them correctly. Failing to manage unrealistic client goals. Client dissatisfaction with the attorney's performance is a common source of fee disputes. In turn, disappointment with the lawyer's services frequently results from...