what to do when your lawyer is padding their bill

The first step is to attempt to resolve the issue with the lawyer directly. You may do that however you prefer: email, snail mail, a telephone call, or office consultation. I suggest, if you do it in writing, that you be specific about specific charges on the statement. Simply alleging "padding" is unlikely to produce the results you desire.

Full Answer

How often do lawyers pad their bills?

Just as shocking were what lawyers concluded about their colleagues' billing practices: 55% said that lawyers occasionally or frequently "pad" their hours; 64% said they were personally aware of lawyers who had padded their bills.

How should a lawyer prepare a bill?

Preparing a bill is part of the cost of being a lawyer. Lawyers should enumerate every expense and identify the person doing it. Simply passing on a percentage of the overall bill smells like overhead, Paige says, and the law firm should eat it.

Should I let my attorney review the bill before I dispute?

Before you formally dispute the bill, you may want to allow your attorney the opportunity to review and explain the bill. In some situations the attorney may not even have seen the bill before it was sent – or she may have simply given it a cursory glance as she signed it.

Why is there a line on my Lawyer's Bill for copies?

For example, if she agreed not to charge you for copies, but there's a line on your bill for copies, it may be that the bill was automatically generated and she forgot to remove that cost before it was sent. In most cases, you should give your attorney the benefit of the doubt that an honest error was made and give her a chance to correct it.

What is it called when a lawyer overcharges you?

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: Padding a bill: This occurs when a lawyer lies about how much time was spent on a matter. By overstating time spent, the bill becomes inflated.

What should you not say to a lawyer?

Five things not to say to a lawyer (if you want them to take you..."The Judge is biased against me" Is it possible that the Judge is "biased" against you? ... "Everyone is out to get me" ... "It's the principle that counts" ... "I don't have the money to pay you" ... Waiting until after the fact.

What is it called when a lawyer messes up?

What is Legal Malpractice? Legal malpractice is when an attorney makes a grievous error in handling a case. Lawyers are held to a general standard and codes of ethical and professional conduct.

What does it mean when a lawyer pads a case?

It means to increase an account fraudulently, particularly an expense account. The term is generally used in relation to a lawyer or a paralegal.

What is the most common complaint against lawyers?

Perhaps the most common kinds of complaints against lawyers involve delay or neglect. This doesn't mean that occasionally you've had to wait for a phone call to be returned. It means there has been a pattern of the lawyer's failing to respond or to take action over a period of months.

How do you know a bad lawyer?

Signs of a Bad LawyerBad Communicators. Communication is normal to have questions about your case. ... Not Upfront and Honest About Billing. Your attorney needs to make money, and billing for their services is how they earn a living. ... Not Confident. ... Unprofessional. ... Not Empathetic or Compassionate to Your Needs. ... Disrespectful.

Can you sue a lawyer for not doing their job?

A claim of malpractice may exist if your lawyer exhibited negligence in your representation. If your lawyer's negligence caused you to suffer harm or a less advantageous outcome or settlement in your case, you may have a claim to sue your lawyer for professional negligence.

Are lawyers liable for mistakes?

Even where an attorney made an obvious mistake, that mistake must have injured the client. The classic example of negligence is the attorney who did not file a lawsuit before the statute of limitations expired.

Why do lawyers ignore you?

If your attorney is not experienced or efficient, they may have missed a deadline or made another mistake and aren't willing to confess their error. There could also be some bad news that is entirely outside of the attorney's control.

What are padded charges?

When a lawyer's fee bill overstates the amount of time spent for work performed, it is called “bill padding.” If a client alleges that a lawyer's bills are not accurate or truthful, how can an arbitrator assess the evidence, including the fee bills, for possible bill padding?

What is bill padding?

Fig. to put unnecessary or additional items on a bill to make the total cost higher. The plumber had padded the bill with things we didn't need. I was falsely accused of padding the bill. See also: bill, pad.

What is block billing?

Block billing is the practice of listing a group of tasks in a block summary under a single time entry. For example: “Draft interrogatory requests; telephone conference with Dr. Brown re: expert report; summarize deposition of Mr. Smith; review and revise correspondence to opposing counsel. 7.3 hours.”

3 attorney answers

I suppose this would be theft, but I have never heard of anybody being prosecuted for it. It is certainly a grievable offense. You could file a complaint with the Florida Bar. But before you do that I'd suggest that you talk with a lawyer about the disputed charges.

Clifford M. Miller

Talk with the lawyer. What might appear to be "padding" might actually be legitimate and necessary to best represent your interests. Calmly and cooly inquire about the billing - don't start out accusing unless you have some evidence of wrong-doing at the outset.

Daniel Lee O'Neil

A lawyer is supposed to charge you for the work he does. If you have a dispute with him, you need to talk to him about it, and the Bar also has a fee dispute resolution center. You would have to speak with a prosecutor about any crimes.

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 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.

How to minimize billable hour inflation?

In order to minimize billable hour inflation, every client should implement outside counsel guidelines that prohibit block billing, billable "hoarding" and excessive incremental billing. However, these are just a few of the practices that lead to overbilling and should cause clients to carefully scrutinize their monthly statements. Please visit our website (www.litigationlimited.com) to learn more about these and other types of law firm overbilling, and the strategies clients can use to help outside counsel improve billing practices and rein in billable hour inflation.

Why block billing?

Another court observed that block billing allows lawyers to "claim compensation for rather minor tasks which, if reported individually, would not be compensable" and precludes the client "from determining whether individual tasks were expeditiously performed within a reasonable period of time because it is impossible to separate into components the services which have been lumped together." In re Leonard Jed Company, 103 B.R. 706 (Bankr. D. Md. 1989).

When billing by the hour, should they not use increments greater than one-tenth of an hour?

When lawyers bill by the hour, they should never use increments greater than one-tenth of an hour. Glover v. Heart of America Mgmt. Co., 1999 WL 540895 at *7, fn 8 (D. Kan 1999) (quarter hour billing... has been virtually extinct for some time"). Yet it appears that anywhere from five to ten percent of lawyers bill clients in unacceptably large chunks of time - usually in one hour or half-hour increments. This is neither honest nor reasonable, and constitutes outright billing fraud, as courts have held that “professional persons who charge their clients fees in excess of $80.00 per hour, based upon time spent, cannot, in all honesty and reasonableness, charge their clients for increments in excess of one tenth of an hour.” In re Tom Carter Enterprises, Inc., 55 B.R. 548, 549 (Bankr. C.D. Cal. 1985). By way of illustration, consider these billing entries from a $750 per hour partner:

How long does a lawyer have to submit a daily submission?

Now consider that, at least according to the California State Bar and nearly every state and federal court in the country, most lawyers' daily time submissions contain anywhere from thirty minutes to three hours of time billed to clients that was not actually worked.

Do lawyers double bill?

However, two-thirds of lawyers admit that "bill padding" occurs at their firms, one-third of lawyers openly double-bill clients, and more than half of all lawyers perform work not because the client or case demands it, but because the lawyer needs to bill more hours. See William G. Ross, Professor of Law, Samford University, Attorney Billing Ethics Survey (2006-2007). Clearly, clients must be proactive when it comes keeping billable hour inflation under control. This article summarizes some of the most common billing practices that lead to billable hour inflation.

How many lawyers are bill padding?

An ABA Journal article suggests that 21% of lawyers engage in bill padding and overcharge their hourly clients. While may readers won’t be surprised, we were astonished that our profession has so many crooks.

Who was the lawyer who billed 1500 hours?

Why? Bill padding! U.S. District Court Judge James Vano found that a single contract lawyer, Alexander Silow, billed 1500 hours and was therefore responsible for claimed fees of $1.5 million. There was only one problem, Alexander Silow was really James Silow , a disbarred lawyer from Pennsylvania and out of the practice of law for decades.

Can lawyers charge what the market will bear?

Lawyers can certainly charge what the market will bear. Increasing billing rates and simultaneously engaging in bill padding is simply too much, however. Lawyers in big cities will soon price themselves out of a job.

Does a paralegal bill for time spent on a call?

In yet another example, one client reported that after every telephone call or email from a paralegal, the paralegal would bill the actual time spent on the call or email. No problems so far.

Did Kansas slash fees?

There is another for writing this post on lawyers overcharging. Last month a federal judge in Kansas slashed most of a fee request after finding massive fraud. To understand what happened, some brief facts are necessary.

Can you add a bathroom break to a bill?

According to that document, “Any short break… of up to six minutes should still be recorded to the matter you are working on, on the basis that you would still be thinking about.” Yes, that means if you are taking a bathroom break but “still thinking about” the client, you can add that time to the bill.

Can you dispute a fee?

If the amounts are small but the dispute won’t resolve, you can also consider fee arbitration. Most states offer a quick, low cost arbitration system for legal fee disputes. Surprisingly, the arbitration panels are often consumer friendly.

What is incorrect billing?

Billings that you know were incorrect because you were there. For example, you met with the lawyer for 15 minutes but were billed an hour.

What is block billing?

Block billings, where the lawyer bills for a number of separate services without specifying the time devoted to each. So, the client just receives a bill that states “X dollars owed for Y hours worked.” Most judges frown on this as it allows for easy bill padding.

What does a pre-law student think of the legal system?

Often pre-law students have a notion that the legal system is dedicated to solving problems and basic fairness. His book will quickly dispel such notions.

How often should you have your books audited?

A good idea would be to have your books audited every year to prove you were following the segregation.

Do unethical attorneys pad their bills?

Yes, Some Unethical Attorneys Pad Their Bills. Here’s One Clear Case | Kiplinger

How to dispute a bill from an attorney?

If you’ve received a bill from your attorney that you feel is unjust, then you can dispute the bill without having to take your lawyer to court. Before disputing your bill, review your initial fee agreement, which should include details on how often you’ll be billed and what the rates will be. Then, review your bill in light of the fee agreement, your own records, and your understanding of what your attorney has done. Try to pinpoint areas where you feel you were overcharged or discrepancies in times or services. Instead of formally disputing your bill right away, call your lawyer and ask them to review and explain the bill. If you still disagree with your bill, write your lawyer a formal letter explaining which fees you're disputing and why. If this doesn't work, check with your state or local bar association to see if they offer free arbitration services. To learn how to prepare for an arbitration hearing, keep reading!

How to dispute a bill?

If there is more than one item you want to dispute, you may want to format them in a bullet-point list. Identify the charge you dispute specifically and provide a brief description of why you dispute it.

What to do if you are allowed to have an attorney represent you during an arbitration?

Look for an attorney who is experienced in handling attorney's fees disputes. Make copies of any documents related to the fee dispute to take with you to the hearing.

What should be included in a fee agreement?

Your fee agreement should include details on how often you'll be billed, how costs will be computed, and the rates at which the attorney will bill for work completed.

How does wikihow mark an article as reader approved?

wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 95% of readers who voted found the article helpful, earning it our reader-approved status.

What should be included in a letter to dispute a bill?

On the subject line of your letter, include the date of the bill you're disputing and the case name, if any, that relates to the services for which you were billed.

What to do if your bill doesn't go into detail?

Ask for a detailed accounting. If your bill doesn't go into detail regarding the charges, you should ask the attorney to provide you with one so you can better understand the charges.

How much does a paralegal cost?

Paralegals. At $100 to $300 an hour , paralegals shouldn't be used for filing, compiling documents, or other routine tasks, Paige says. All too often they're performing work that could be done by a secretary--or a $20-an-hour lawyer in India. Dave & Les Jacobs/Getty Images.

Should lawyers enumerate expenses?

Lawyers should enumerate every expense and identify the person doing it. Simply passing on a percentage of the overall bill smells like overhead, Paige says, and the law firm should eat it.

Why is it so difficult to detect a lawyer's cheating?

Detection is made more difficult because so many lawyers turn a blind eye toward their colleagues' dishonesty. Catholic University law professor Lisa Lerman talked to many lawyers uncomfortable with partners who cheated, "but they go along with it because they see it as professional suicide to do anything about it.".

How long has a lawyer been on a day off?

The lawyer claimed to have never taken a day off in four years. But every lawyer must remain current on the law, go to firm meetings, and stay in touch with clients to keep and develop business It's impossible to convert every second into time that can be billed to a client.

Do lawyers pad their hours?

Just as shocking were what lawyers concluded about their colleagues' billing practices: 55% said that lawyers occasionally or frequently "pad" their hours; 64% said they were personally aware of lawyers who had padded their bills. The in-house lawyers surveyed were even more clear: over 80% felt that the billable hour influenced how much time the outside lawyers they hired spent on a case, and 74% felt that the billable hour significantly decreased lawyers' incentives to work efficiently.

Is Webster Hubbell a proof of abuse?

The Case of Webster Hubbell. It's sometimes easy to pick out the most extreme examples of bad behavior and claim they are "proof" of widespread abuse. But there are so many anecdotal accounts of incredible billing abuses by lawyers that it's hard to choose among them.

Who surveyed lawyers in 1991?

In 1991, Cumberland (Ala.) law professor William Ross surveyed 280 lawyers in private practice and 80 who worked in-house for companies. The results were shocking. Seven out of eight practicing lawyers said that it was ethical to bill a client for "recycled" work originally done for another client. Half said they had billed two different clients for work performed during the same time period, such as dictating a memo for one client while traveling for another.

Is there a punishment for billing fraud?

Despite these extreme cases, lawyers -- with the notable exception of the high-visibility Hubbell, whose prosecution stemmed from the Whitewater investigation -- are rarely punished for billing abuses. Raleigh bankruptcy attorney Mark Kirby was indicted in federal court on 16 counts of billing fraud.

What happens if you pay upfront for a lawyer?

Anytime you pay an upfront fee, you risk the lawyer not doing much or any work.

Why do law firms charge high billing rates?

Sometimes, law firms use high billing rates to stick clients with unnecessarily expensive bills for research, secretarial work, and other low-level tasks.

How many hours did Mayer Brown bill?

For example, an extensive Illinois hearing board investigation into the billing records of a lawyer at Mayer Brown found that he billed more than 150 hours during a two-week period in which he actually worked less than 50.

How much did Vick's lawyers charge for his bankruptcy?

Faced with a $2.66 million fee for a bankruptcy case, Vick learned that his lawyers were charging for extensive overhead expenses. As Am Law Daily noted, these included the cost of running air conditioning during the weekend; taxi rides home for employees working late; and $1,200 for plane tickets from New York to Kansas.

How much did the attorneys charge for the Ponzi scheme?

Allen Stanford Ponzi scheme recovered only $81 million. According to the AP, the attorneys charged $27 million for three months of shoddy work.

Is it justifiable to spend big bucks on litigation?

Like a sick person, a company facing litigation is willing to spend big bucks to get out of a trouble. It's entirely justifiable, and lawyers are only too happy to oblige, billing clients for every minute worked, and then some.

Do lawyers squeeze money out of clients?

Like all consultants, some lawyers find questionable ways to squeeze money out of clients. Some are legal, some aren't, but all will make a CFO's blood boil.