|
Every attorney probably has a different approach to
billing. My personal
approach to billing is probably something different than most clients
have historically experienced. I have found that by taking the time that
we do, uncompensated time as it is, to every day enter detailed time
entries for the work we do, we experience few billing questions and
virtually no billing disputes.
What I ask those working with or for me to do is
this. Every day every
attorney and paralegal turns in a timesheet with time entries for every
client matter that very specifically records what work he or she
performed. For example, a
time entry will not just say “review of file”, “internal office
conference”, “telephone call with John Doe”, etc.
Rather time entries should say something like:
“NRP tcw client re: timing of Brief and then research
prescriptive easement issue and prepare first draft of Summary of
Judgment Brief specifically relating thereto; thereafter conference with
WBB regarding that section of the Brief and then revisions thereto to
incorporate changes made.”
Or here is another type of time entry relating to a
telephone call:
“WBB Telephone call with Planning and Development
Services case manager Jane Roe with respect to the issues raised at the
pre-application conference, specifically the Woodlands Protection Area
(“WPA”), which is problematic because of utility extensions through that
area; consequently, suggested that WPA language be modified to
accommodate the utility lines.”
Or maybe an entry will be something like this:
“WBB conference with client with respect
to the site visit WBB recently made and the site constraints he
witnessed; also regarding the possibility of a Form District Change and
Zoning Change and the issues likely to be raised by neighbors and the
Planning Commission, specifically re: road access, woodlands
preservation, stream setbacks, wetlands issues, and style and design of
buildings, including problems with the initially conceived site layout;
also discussed fees and the entire zoning process giving specific dates
for key milestone events, including dates for possible Land Development
and Transportation Committee (LD&T) meeting and Planning Commission
public hearing appearances; thereafter draft, revise and send letter to
client explaining all of the things discussed in the meeting.”
With entries of this kind, the client
not only knows specifically what was done for the time that was changed,
but also, over the course of the entire case, the client has the benefit
of the attorneys’/paralegals’ diaries of the case history.
As opposed to our approach, some
attorneys keep one set of notes in the case file and another very
abbreviated record on billing sheets available to the client.
Our view is that the client should have the same benefit of those
file notes.
Other attorneys keep no file notes and
only provide abbreviated time entries, in part because time entries area
time-consuming, agonizing process.
After years of legal work, many attorneys understandably get run
down by keeping detailed timesheets, so they give up on the practice.
Every 4-8 weeks, I run what we call “prebills”,
which are computer generated sheets for every client and client matter,
which I, as the billing attorney, after hours or over weekends (since
editing these is uncompensated time) take time to mark up, often marking
time entries down to reflect the fact that sometimes there is a
difficulty or learning curve in a case that should not be charged;
sometimes reflecting data entry errors; and sometimes editing time
entries to make them easier to understand.
Our view is that time entries on an invoice should read like a
story from beginning to end so the case diary ends up making sense to
the client.
After editing a prebill, it is
finalized as an invoice and sent to the client.
Payment is expected within 30 days from date of invoice.
Invoices are usually sent every 4-8
weeks. However, if a matter
is something of short duration, an invoice might not be send until the
end of the matter, which might be a shorter or longer period of time.
When cases involve key events, invoices may be sent after such
key events such as an appearance at a public hearing and so forth.
When closings are handled, we try to have the bills available at
the time of closing so that they can be paid out of closing.
Sometimes we charge after, instead of at, the closing if that
works for the client.
Because we are a small firm and place
such a high emphasis on the importance of fair, consistent, thorough
billing, we are flexible. We
have full time staff devoted just to this effort.
It has paid off for us and for clients over time.
As to expenses, we bill directly for
expenses in addition to fees for legal services rendered.
Expenses will include such things as filing fees (which we do not
advance for a client but expect payment in advance), exhibit
preparation, photocopying, photography (which we do in-house) and so
forth.
Normally we do not expect to be paid a
retainer up front because most of our clients are well-known locally or
nationally within the industry of development interests that we
represent or because we have ongoing relationships that have proven
beneficial and billing and payment problems have not occurred.
On occasions when a client is new or a project is especially
risky and a client decides perhaps to proceed against unusually
difficult circumstances, we may request a retainer in advance.
Our current hourly rates are $275 per
hour for senior partner, $225 per hour for junior partner/associate and
$125 per hour for paralegal time.
|
