By Fred Reilly, American Attorney and English Solicitor

Let’s face facts. In America, legal services are expensive. According to a 2003 survey by the U. S. Census Bureau, the estimated revenue for taxable employer firms that provided legal services (except notaries) was $185.5 Billion. That’s a lot of billable hours…

Did you hear about the Connecticut attorney who billed a 94-hour day during which he claimed to have reviewed 113 files, received 91 phone calls and wrote 72 letters? Fortunately, he got caught. In 2005, the U.S. Department of Justice prosecuted him for false and fraudulent claims for attorney fees. According to the allegations in the civil complaint, the attorney, among other things, engaged in double and triple billing, submitted inflated bills, and billed for time spent by support staff as if it was his own.

According to an article appearing in The Connecticut Law Tribune, during a two calendar year period, the attorney allegedly charged for more than 24 hours of work in a single day 135 times and charged for between 13 and 24 hours of work in a single day approximately 226 times. Ultimately, the attorney paid $1.24 Million to settle the case.

But the story doesn’t end there. Amazingly, the attorney was not disbarred and still practices law to this day! Although this is obviously an extreme case, it highlights why the general public harbors severe reservations about attorneys and the fees they charge.

Hiring an attorney is a very important decision. Controlling the cost of legal services is equally important and should never be ignored. Unless you understand how your attorney will be compensated and take the steps necessary to control their compensation, your attorney fee can quickly spiral out of control. Excessive attorney fees are usually the result of either unscrupulous attorneys or miscommunication between an attorney and client. With the cost of legal services escalating, you cannot afford to venture into the marketplace without ample knowledge to protect yourself. There is simply too much at stake.

As an attorney who’s actively practiced law for the past twenty years, I’ve met with countless people who absolutely expect to receive a raw deal whenever they seek the services of an attorney. As much as I dislike the practice, I recognize that excessive attorney fees are a fact of life for clients who don’t know how to protect themselves. I also recognize that ethical attorneys can be quite expensive and many consumers would benefit from inside information about how to control the cost of legal services.

In The Godfather, the immortal Mario Puzo made an observation that resonates with anyone who has ever hired an unscrupulous attorney. He said: “A lawyer with his briefcase can steal more than a hundred men with guns.”

Not all attorneys are hardwired to gouge you. Once you get beyond the public’s perception and lawyer jokes, most fair-minded clients would readily admit that the majority of attorneys are hardworking, ethical professionals who treat their clients with respect and fairness. But like any other profession, there are unscrupulous individuals who will gladly rip you off without a moment’s hesitation.

So how do you combat the unscrupulous? Knowledge of their methods is a great place to start. This article highlights the eight most common methods used by unscrupulous attorneys to gouge clients. Although this is not an all-inclusive list, it is comprehensive and addresses the most common methods that unscrupulous attorneys use to separate clients from their money. Ignore these at your peril!

1. The first method is intimidation and it’s one of the most powerful tools of the unscrupulous attorney. Both the attorney and client realize that the attorney is far more knowledgeable about the law and how to solve legal problems than the client. Let’s face it, if you could solve the problem on your own, you probably wouldn’t need the attorney’s expertise or incur the cost of hiring one. In addition, both the attorney and client realize the existence of an inherent difference in bargaining power that could easily be exploited by the attorney. Although an attorney has an ethical obligation to put the client’s best interests ahead of his own, the unscrupulous attorney rarely allows such ethical considerations to deter his greedy conduct. In any given situation, an unscrupulous attorney could provide a very impressive sounding explanation for taking certain action along with the express or implied admonition that your failure to follow their advice could result in disaster. Since the client is seldom qualified to accurately assess the legal ramifications and wants to rely on the attorney’s advice, the client feels that she has little choice but to acquiesce. If the unscrupulous attorney didn’t have the client’s best interests in mind, the client gets gouged.
2. The unscrupulous attorney preys on the client’s desire for retribution or revenge. Rather than counseling the client to resolve a legal problem in the most efficient, cost-effective manner, the unscrupulous attorney preys on a client’s desire to “get a pound of flesh.” Thus, the motivation behind strategic decisions is shifted from “how to best solve the problem” to “how to inflict as much pain, anguish and expense on the other party as possible.” When an unscrupulous attorney convinces a client to adopt a strategy defined by retribution and revenge, the legal problem inevitably becomes more complex and far more difficult to resolve. In addition, judges do not look kindly upon litigants who “play games” and effectively abuse the legal system for the sole purpose of poking a stick in someone’s eye.
3. The unscrupulous attorney never fully explains the basis for their fees and how fees will be calculated. Although it can be uncomfortable for both the attorney and client to discuss fees, it pays to have a candid discussion of fees at the outset of the engagement. Let’s face it, no one likes surprises – especially unexpected, mammoth bills. Due to the nature of the attorney client relationship, it is imperative that both parties openly communicate and trust each other. As a fiduciary, an attorney has an ethical obligation to explain the basis for their fees.
4. The unscrupulous attorney charges for work that was simply not done or grossly exaggerates the amount of time required for a task. As an attorney, I can assure you that clients frequently do not understand the time, effort and discipline that must be expended to resolve a legal problem. A scrupulous attorney who understands the complexities of a certain situation and has previously dealt with similar problems should be able to explain the pitfalls, uncertainties and logjams that can occur. Thus, a scrupulous attorney should be able to provide you with a good faith estimate of the time, effort and money needed to address a particular legal problem. An unscrupulous attorney will gloss over such details and purposely mislead the client. At the end of the day, the client doesn’t know what action was taken and is floored when they receive a grossly overstated statement for attorney fees. Frequently, the statement doesn’t itemize the work the attorney performed, but rather provides a summary such as “For services rendered” along with a staggering figure.
5. The unscrupulous attorney preys on the client’s insecurities and leads the client to believe that he cannot make any decision without the attorney’s express consent and blessing. In this manner, the unscrupulous attorney completely disregards his role as a specialist advisor to the client and assumes the role of the ultimate decision maker. Attorneys have an ethical obligation to place the client’s interest above their own. The unscrupulous attorney intentionally skirts or completely disregards ethical obligations that get in the way of charging excessive fees.
6. The unscrupulous attorney convinces the client that it is absolutely crucial to contest every point. Although I have a high regard for a client who insists on taking specific action “for the “principle of the thing” I will immediately advise the client that principles can become very expensive. A contract negotiation is a good example. Prior to entering a negotiation, the attorney and client should fully discuss the appropriate strategies to reach the desired outcome. When formulating your strategy, it is inevitable that some issues are far more important than others. In essence, each issue represents a bargaining chip. You must be prepared to give up some minor or insignificant chips in exchange for gaining other more important chips. Don’t allow your attorney to argue every issue that ever arises – especially if they’re billing you by the hour!
7. By making a legal dispute as acrimonious as possible, the unscrupulous attorney ensures that he’ll be intimately involved in even the simplest issues. In this way, an attorney is always generating extra work by constantly throwing gasoline on the fire. An attorney who encourages his client to be as unreasonable as possible is doing his client a disservice. For example, if a divorce proceeding has become so toxic that the two parents can only communicate through their attorneys, “simple” arrangements for a weekend visitation could easily escalate and cost in excess of $500.00 in attorney fees. This method of inflating the attorney fee is particularly insidious when the parties are financially unable to afford these additional expenses.
8. The unscrupulous attorney abuses the legal system. In the medical world, unscrupulous doctors order unnecessary tests. An unscrupulous attorney has a wide selection of procedural moves he can make to bog a case down in the legal system with the sole aim of increasing attorney fees. Common examples are conducting overzealous discovery, filing frivolous motions and setting unnecessary hearings. Since the attorney is far more familiar with procedural issues, the client usually operates at a distinct disadvantage and is rarely in a position to question the necessity of a specific procedural move.

Now you have the crucial information that will help protect you from one of the most loathsome predators on the face of the earth – the unscrupulous attorney!

ABOUT THE AUTHOR

Fred Reilly’s law practice includes advising clients on international business transactions, corporations, contractual issues, real estate transactions, civil litigation and administrative proceedings.

Fred has been an attorney for more than 20 years. He is licensed to practice law in California, District of Columbia, Florida and as an English Solicitor. He has been admitted to practice before the United States Supreme Court and the United States Court of International Trade. Fred graduated from the London School of Economics and Political Science (LL.M. in International Business Law), Cumberland School of Law at Samford University (J.D. and Associate Editor of The Cumberland Law Review) and Purdue University (B.S. in Management). Fred spends time each month in Los Angeles and Central Florida. He is a member of The Beverly Hills Bar Association.

DISCLAIMER: This article and its content are intended to provide general information on legal topics and shall not serve as a solicitation for services in any jurisdiction where prohibited by law. This article is not, nor is it intended to be used as a substitute for legal advice. You should consult an attorney for individual advice concerning your own situation. Sending an email to the owner of this website, and receiving any response thereto, does not, in and of itself, create an attorney-client relationship.

© Copyright 2007 by Fred Reilly. All rights reserved.