what is the crime when a lawyer overbills a client?

by Marques Koepp 7 min read

If you believe that your attorney has padded their bill excessively, you should first put your concerns in writing to the attorney and see if you can resolve the situation. It is a violation of the rules of professional conduct for an attorney to pad a bill to a client.

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What is law firm overbilling?

Nov 26, 2012 · It is a violation of the rules of professional conduct for an attorney to pad a bill to a client. It may also constitute a breach of contract, breach of fiduciary duty, and perhaps even fraud. 0 found this answer helpful | 2 lawyers agree Helpful Unhelpful 0 comments Stuart M. Address View Profile 61 reviews Avvo Rating: 10

Do lawyers bill clients in unacceptably large chunks of time?

One Block Billing. Approximately 90 percent of law firm clients who are billed on an hourly basis are “block billed.”. Block billing is an accounting technique whereby lawyers aggregate multiple smaller tasks into a single "block" entry, for which a single time value is assigned. In theory, the total time charged equals the sum of the ...

What is overbilling and how can you avoid it?

Mar 31, 2017 · A fee dispute can also have more serious consequences – namely, bar sanctions, including suspension and disbarment. I was reminded of the potential for severe consequences when I recently saw a jarring headline in a legal periodical: “Attorney Disbarred for Charging Unreasonable Fees.” “Boy,” I thought, “talk about a wake-up call!”

What percentage of law firm clients are block billed?

Lawyer’s bills should be reasonable. It is important to discuss your situation with an experienced attorney who can build a strong, effective legal malpractice case. Schedule A Consultation At Klein & Wilson. To reach our experienced attorneys about legal malpractice matters call 949-478-0521, or contact the firm by email.

What is overbilling law?

Law firm overbilling - whether described as the euphemistic "bill padding" or simply "billing fraud" - is a serious problem that is seldom discussed and even less frequently addressed. But rare is the legal bill that does not include at least some "padding." In fact, according to the California State Bar, most bills are inflated at least 10-30 percent. This article describes three common ways legal bills are inflated and provides tips to help clients identify problematic billing practices.

What percentage of lawyers are block billed?

Approximately 90 percent of law firm clients who are billed on an hourly basis are “block billed.” Block billing is an accounting technique whereby lawyers aggregate multiple smaller tasks into a single "block" entry, for which a single time value is assigned. In theory, the total time charged equals the sum of the duration of each discrete task. For example, after spending five minutes on a phone call, 35 minutes revising a junior associate’s draft motion and three minutes dashing off a brief e-mail to the client, the attorney should bill the client for seven-tenths of an hour. Unfortunately, in far too many cases, the final block-billed entry for these tasks will end up looking something like this:

What happens when the economy slows down?

When the economy slows down and billable hours are at a premium, work tends to be retained and billed by more expensive senior attorneys. This results in partners doing associate work, associates doing paralegal work, and paralegals doing secretarial work.

Examples Of Overbilling

While the act of overbilling can simply be a lawyer overcharging for services, there are numerous ways this can occur, for example:

Schedule A Consultation At Klein & Wilson

To reach our experienced attorneys about legal malpractice matters call 949-478-0521, or contact the firm by email.

Common Types Of Overbilling Schemes

Overbilling schemes are unfortunately one of the most common types of consumer fraud. Billing schemes work by taking advantage of lax or overly complicated accounting departments in the hope that the scheme will not be noticed.

Overbilling In Different Industries

While overbilling schemes that seek to defraud companies are illegal, not all overbilling is necessarily fraudulent. In industries like construction with slow payment turn-around times, overbilling can be a legitimate strategy for keeping projects going instead of stopping and starting due to accounting lead times.

How To Protect From Overbilling Schemes

While explicitly fraudulent overbilling schemes require acumen and diligence from accounting departments, companies can also actively protect themselves from unintentional overbilling.

Speak With An Experienced Consumer Fraud Attorney

Overbilling schemes, like most forms of consumer fraud, can be a tricky, often complicated process.

What are the penalties for misconduct?

Misconduct shall be grounds for one or more of the following sanctions: (1) Disbarment by the court. (2) Suspension by the court for an appropriate fixed period of time not in excess of three years. (3) Probation imposed by the court not in excess of two years, or imposed by the board or counsel with the consent of the respondent not in excess ...

Is probation a sanction?

Probation may be an appropriate sanction in certain cases of disability, if the condition is temporary or minor, and capable of treatment without transfer to disability inactive status. The court, the board, or counsel may impose probation. If probation is imposed by the board or by counsel, the consent of the respondent is required.

What are the types of sanctions?

Types of Sanctions. Misconduct shall be grounds for one or more of the following sanctions: (1) Disbarment by the court. (2) Suspension by the court for an appropriate fixed period of time not in excess of three years. (3) Probation imposed by the court not in excess of two years, or imposed by the board or counsel with the consent ...

Is attorney-client privilege similar to federal court?

Although there are many similarities in the attorney-client privilege from state to state, and in state and federal court, there are variations. Evidence rules, statutes, and court decisions shape the privilege, and determine when the crime-fraud exception applies. Although every state recognizes the crime-fraud exception, when and how it operates may vary somewhat.

What is attorney-client privilege?

The attorney-client privilege protects most communications between clients and their lawyers. But, according to the crime-fraud exception to the privilege, a client's communication to her attorney isn't privileged if she made it with the intention of committing or covering up a crime or fraud. Because the attorney-client privilege belongs to ...

What is the crime fraud exception?

The crime-fraud exception applies if: the client was in the process of committing or intended to commit a crime or fraudulent act, and. the client communicated with the lawyer with intent to further the crime or fraud, or to cover it up.