Article by Christine Simmons in the New York Law Journa lhttp://www.newyorklawjournal.com/PubArticleNY.jsp?id=1202575867624
Suing clients for unpaid legal fees could become routine as firms are growing more assertive about collecting overdue bills .The New York Law Journal reviewed law firm collection suits against former clients filed in the past two months in Manhattan Supreme Court. Each week, between three and seven such suits were filed during the period.
The fee suits were brought by large and small firms, and boutiques and solo attorneys who have pursued amounts ranging from a few thousand to hundreds of thousands of dollars or more. Not all fee disputes wind up in court. The number of cases closed in arbitration and mediation programs overseen by the state court's Attorney-Client Fee Dispute Resolution Program increased to 1,179 last year from 579 in 2004.
The number of suits against former clients tends to increase at the end of the year when firms try to wrap up their collections. The firm considers the client's ability to pay, what the firm considers to be the value of its work, the client's expectations of cost and the risk of counterclaims.
One major issue for the law firms is Malpractice claims. These claims are brought against firms in 42 percent to 47 percent of cases where the firm has sued for fees. Firms also face the risk of forfeiture or disgorgement if the client claims the legal services didn't meet the appropriate standard.
Overall, lawyers are much more aggressive about collecting money today. The economy plays a big part in it. Some law firms have gone as far as sending partners daily emails on billing and collections. Its amazing how times have changed.
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