Article by By Christine Simmons
http://www.law.com/jsp/lawtechnologynews/PubArticleLTN.jsp?id=1351154684684&thepage=1
For many litigation support companies getting paid can be one of the most challenging parts of our business. Some law firm litigation vendors are taking a page from their clients' handbook — and suing the firms over unpaid bills. This is a very risky strategy.
Law firm consultant Peter Zeughauser of the Zeughauser Group said suits filed by vendors over fees don't happen because bills slip through the cracks. Service providers to law firms go through significant efforts to collect, he said, and they are usually wary of suing because it may create a wrong reputation in their client base. In the vendor's mind, it has good reason to sue, he said.
The one thing you have to realize as the vendor is in many cases the law firm is waiting to get paid by their client before you get paid. One way to avoid this issue is to try and work with your law firms to create a direct client billing model. This is something that has helped my company in dealing with the payment process.
Suing your clients should be the absolute last resort. This industry is very small and the last thing in the world you want is a reputation for suing your clients.
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