In the event there are concerns over unethical billing, especially if they refuse to clarify the bill or there continue to be billing errors, you may need to reach out to the state bar association.
All law firms, including those focused on personal injury, should make sure to uphold the best practices for legal billing. It helps clients know what to expect and ensures smooth processes while building a trusted reputation.
Here are the metrics that all personal injury attorneys should follow for legal billing:
Set Clear Billing Processes
Right from the start, it is imperative to implement a standard practice for billing. No one likes surprises when it comes to bills, and having a clear outline tells clients what to expect. Some attorneys set an hourly rate billing that charges for the exact amount of time worked. Others use flat fees, setting a price for the entire scope of work provided. Retainers are another way to bill, which involve having clients pay one price upfront while the hours are deducted from this amount.
In personal injury law firms, the most common billing model is using the contingency fee basis. This allows personal injury lawyers to provide representation to victims in a variety of scenarios from car accidents to slip and falls without the need for payment upfront. Since contingency fee billing is designed as a percentage the firm collects from the settlement awarded to the client, there is no fee if the case is lost. Ultimately, personal injury lawyers will review cases during a free initial consultation and determine if it has enough validity to take on the risk of representation.
Regardless of the type of billing an attorney chooses, having it put in writing communicates clearly from the start to all clients. This will help them know exactly what to expect when they choose a lawyer for their legal matter.
Written Fee Agreements
When a law firm chooses a particular billing method, they should go to the next step of putting it in writing. Documenting these details provides every client with a full understanding of the scope of the work that will be performed as well as the expenses they should expect.
In addition to being fully informed of legal fees, victims in personal injury cases should be told in writing how and when they will be expected to pay the fees associated with this representation. Clarification helps set expectations and align them between attorney and client. When it comes to contingency fees in personal injury, the written fee agreement should include the percentage that will be paid to the attorney when the case is won. It should also state that no fees will be expected of the client in the event the case is lost.
Ethical Billing
All lawyers that practice in the U.S. are bound by ethical conduct and must adhere to compliance regulations as set by the American Bar Association (ABA). The rules of the ABA also specify ethical billing conduct and fair billing practices.
How can a client tell when unethical billing is taking place? Attorneys that mark up their time, engage in double billing, or charge clients for overhead are engaging in acts of misconduct. The importance of choosing a reputable personal injury attorney who engages in honest legal and billing practices cannot be overstated.
Simplify Payments for Clients
Years ago, billing was conducted by mail and payment was expected by check. The overwhelming majority of people today prefer to make payments online, and having options available will make it less stressful when it comes time to pay.
Personal injury victims in particular are often under enough stress from their legal matters. They have incurred serious and painful injuries that likely have changed life as they knew it. In addition to being forced to adapt to their new normal, they are usually facing extreme financial burdens after a negligent person or entity caused their injuries. When clients are provided an array of solutions, it reduces their stress and gives them one less thing to worry about.
For law firms, offering online payments also makes it easier to track and process. Everything that is needed to keep on top of bookkeeping can be implemented, minimizing billing errors and keeping things straightforward for clients and attorneys alike.
Streamlining Through Technology
Since most attorneys value the ethical oath they took, the majority will only make billing errors by accident. This can often be avoided by using technology that can eliminate the tedious and time-consuming nature of the billing process.
It’s easy to make an error, write the wrong line item, or even bill the wrong client when doing things the old-fashioned way. Attorneys that use the latest technology to assist with timekeeping will be more readily transparent and able to serve their clients well.
How Can Clients Spot Unethical Billing Practices?
If you have a personal injury matter and are worried about being taken advantage of through unethical billing, it is important to know what to look for. You should always review each billing statement to look for clues.
Some attorneys may attempt to block bill, which is when they bill for many separate services without reporting the specific time they devote to each. It’s common when bill padding, another unethical practice. Others may repeat entries for the same amount of time, bill for reviewing a file when there is nothing new going on in the case, or even bill you for 15 minutes of their time by phone when your phone records can show it lasted less than 5 minutes. There are many other examples, but clients should ask for clarification on a bill if something isn’t clear. It could simply be a mistake that your attorney will be happy to remedy.
What to Do When a Lawyer Isn’t Using Legal Billing Best Practices
In the event there are concerns over unethical billing, especially if they refuse to clarify the bill or there continue to be billing errors, you may need to reach out to the state bar association. Other counsel may also be advised. Essentially, when the code of ethics is being violated, clients have options under the law that allow them to seek justice and be billed properly for services rendered.
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