BILLING AND FEES

Attorney's fees, unfortunately, are not pure net profit as some clients may assume. Fees are considered gross income out of which numerous expenses are deducted. As with all businesses, sometimes expenses exceed income and attorneys, like everyone else, have to manage their cash flow in a professional and businesslike manner.

Everyone understands that duplication of effort increases costs. We have found over the years that speaking to relatives, etc. of our clients often causes a duplication of effort. Frequently, the information given to the relative will lose something in the translation to the client. The client then becomes confused and either mistakes are made or we have to re-explain the information to the client. Of course, this causes misuse of time and energy for which the client is billed.

Therefore we are only obligated to consult with the client regardless of who guarantees the payment of  fees or bills. Also, we are not required to and will not consult with the clients parent’s, boyfriend/girlfriend, relative, surety, spouse, opposing party or significant other concerning this legal matter. If, at our discretion, we do consult with one of the aforementioned persons, by telephone or otherwise, the client will be billed at the applicable hourly rates.

Hopefully, the parties are able to reach an agreement regarding the final order without the time consuming and costly procedure of a jury trial or a trial to the Court. If the parties reach an agreement, we need 30 days from the date a settlement is reached to draft and prepare the final order. Should the opposing party , or the client, make any changes in the terms and conditions of the proposed settlement agreement, other than typing errors, no matter how small the changes, we will need an additional 30 days to make those changes. Of course, any changes to the final order, other than typing errors, shall be charged at the hourly rates stated above.

As with any business, the changing economic circumstances such as increased costs in materials and supplies, as well as increased overhead costs, may make it necessary to adjust our rates. If this occurs, you will be notified in writing on your monthly statement. Please read your billing statement carefully for these and other messages.

Statements

Keeping Track of Charges:   Statements are prepared on a monthly basis. Liz, Brandon and I enter each activity we perform, the client for whom the activity is performed, and the amount of time it took to perform the activity. 

Questions About Statements

The first bill in most cases will reflect the amount of your minimum fee as being the total amount due.  Do not freak out. It does not mean necessarily that you have spent the entire retainer on that one bill.

Telephone: If you have a question about your statement, please contact us. If you call, you will speak to Liz or Brandon who will relay your to me if they cannot assist you immediately. 

It is always quicker and easier for all involved if you provide the date of the invoice and the specific charges and/or payments about which you have questions. 

Fax: Perhaps the easiest and most efficient way to contact us about your statement is to circle the charges in question, write a brief description of your concern, and fax it to us. We will then have all of the information necessary to investigate your concern and can respond more quickly.

When to Contact Us

As soon as possible. At a maximum, 5 days from the date of the statement. It is very difficult to remedy a mistake several months down the line.

Administration Fee

You will notice an administration fee on your Statement each month. This fee covers miscellaneous expenses and file maintenance. Instead of charging you 20 cents per copy, 20 cents per faxed paged, postage on every piece of correspondence, certified mail charges, etc., you are charged a $15.00 fee each month  to cover these expenses. 

Payment

All statements must be paid within 10 days from the statement's date.

Forms of Payment

Payment may be made by any of the following methods:

1. Personal Checks: Please make payable to Diane M. Wanger. A $25.00 fee will be charged for each returned check. Your check will not be resubmitted a second time. Following a returned check, payment must be made by one of the following methods. Third party checks will not be accepted.

2. Cashier’s Checks and Money Orders: Please make payable to Diane M. Wanger.  Third party checks will not be accepted.

3. Cash.

4. VISA, MASTERCARD  and Discover : You may write or call and give the information to one of our staff.

All fees due must be paid prior to finalizing your case whether that means proving up an agreed divorce or proceeding to final trial. Since legal services are just that .... services, many people have trouble understanding this position. However, it is not unlike your telephone service or electric service. If you fail to pay the money owed, your telephone service or electric service will be stopped. Those companies will not continue to provide their services for free and will not provide further services until the amount due is paid in full.

These accounts are most often used in family law cases when a case is going to a jury trial or a judge trial. It is similar to an escrow account. The funds are held until fees and expenses are incurred as reflected on the client’s billing statement. Once the fees and expenses are incurred, that amount is transferred from the trust account to our firm’s operating account as fees earned or reimbursement for expenses. We may pay expenses directly out of the trust account and this will be so noted on the billing statement.

If either we or the opposing party requests a trial setting with the Court, it is necessary for the client to deposit a lump into this account. The exact sum is governed by the Agreement for Legal Services entered into by you and I at the time we are hired. The usual lump sum is anywhere form $5,000.00 to $10,000.00 depending on the issues in the case. However, the lump sum is not a flat fee and the hourly rates still apply. Remember, to properly prepare a case for trial, we often must turn down other cases or put other client’s on hold. In addition, the issues involved in the case will determine the amount of funds needed to properly represent a client in court.

For example, the extent of the parties assets and debts, the extent to which the client desires to prove up fault grounds, the nature of the allegations regarding custody, whether experts are needed to evaluate the parties, the children, or the property and the fees charged by the experts for their appearance in trial, the amount and extent of the discovery that is done, and the number of days that we actually spend in court trying the case are all factors in the final total cost. Remember, you will continue to be billed at our hourly rates.

Failure to Pay: From time to time instances have occurred when clients simply refused to pay the fees due for services rendered. In such instances we may take one or a combination of the following actions:

Attorney Withdrawal: We can immediately withdraw as attorney of record on your case. You have the right to a hearing on this matter which requires live testimony to the Judge as to why we should or should not be allowed to withdraw.

Interest Charges: We may charge you interest on any over due amount.

Collection Agency: We may give your bill to a collection agency.

Report Against Credit: We may report the debt to a credit bureau as a negative against your credit.

Judgment: We may file a lawsuit for a judgment against you.

In most instances, your billing statement will reflect any amount that may be past due, the number of days your bill is past due, and the interest that has been charged on the past due amount. Your billing statement also contains a written notice telling you what action will be taken regarding the past due amount. Since we do not employ an outside accounting firm, these messages and notices that are shown on your billing statement are the only notices and reminders you will receive. Please read your billing statement carefully for these and other messages.