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Me Marie-Chantal Thouin*

What would you say if you received your credit card statement after using your card for one year – or even 3 years – without ever having received an interim statement?

After the initial shock, you would most probably not issue a payment until you had carefully examined the various entries in your account, perhaps because you had underestimated the extent of your expenses.  You might very well question some of those expenses: “That’s impossible.  I never go there!”; “I rarely buy things at that store.”  “I’ve never spent that much on my car repairs!” and so on.  In short, there is a chance you would be tempted to claim that errors have been committed, perhaps even fraud.  Moreover, you might not have the necessary funds to pay the entire amount within the stipulated deadline.

Now, imagine a client who receives his lawyer’s statement of fees one year – or even three years – after the services have been rendered.

The client might very well react the same way the credit card holder would, and this could lead to problems for the lawyer.  For example, the client might question whether the services were truly rendered or whether the lawyer really spent that much time on his file.

Such a situation can be avoided quite easily by billing regularly.  There are too many lawyers who still believe that regular and detailed billing will scare away their clients.  The contrary is true: detailed regular billing is an excellent means of ensuring the satisfaction of clients and securing their loyalty.  Regular billing provides a lawyer with the ideal opportunity to inform his client of developments in his case and the steps taken by the lawyer and to send the client a copy of correspondence exchanged with the other parties involved.  This reassures the client that his case has not been forgotten and gives him an indication of the scope of the mandate entrusted.  In this way, the client can assess the costs of his case and make an informed decision whether or not to continue with the legal process.

In addition to being an important source of information for clients, detailed regular billing provides several benefits to lawyers.  Dissatisfied clients, and those who cannot afford the legal services in question, will stand out.  In both of these situations, it is preferable to be informed early on so that the proper steps can be taken, rather than waiting until the end of a case.

In a similar vein, it bears reminding that actions for unpaid fees are often met with a cross-demand alleging professional liability!  Almost 10% of the claims processed by lawyers’ liability insurers are directly related to lawyers’ attempts to collect their fees.  It is becoming more and more popular for clients to defend themselves by alleging that, not only were the services rendered not worth the fees charged, but the lawyer committed an error.

Therefore, before resorting to the courts in order to collect your fees, it might be worthwhile to consider an amicable settlement.  Such an agreement is also a more likely result when dealing with an interim statement than an aggregate statement sent when the entire case is finished.

If you think billing while a file is in progress is difficult, you might find it even more awkward after the file has been closed, especially if you have not obtained the results your client had expected.

* Me Marie-Chantal Thouin, Coordinator, Risk Prevention Department, Professional Liability Insurance, Fund of the Barreau du Québec.