Refunds and Billing Disputes When Changing Attorneys |
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Before changing attorneys, you could carefully evaluate the pros and cons of making the switch. One thing that most people will consider is money: Will a new attorney cost you more (or less) money in the long run? And if you're spending more money on a new attorney, do you think the investment will pay off in the long run with a more-desirable legal outcome? You should also consider how much time it will take your new lawyer to get up to speed on your legal matter. Although your old attorney is required to turn over your files to the new attorney, it will take time for your new attorney to review the contents of your files and get familiar with your legal problem. And that time will cost you money.
Pre-Paid Fees
You may have some unexpected money coming your way if you pre-paid your former attorney. Although rules regarding legal fees vary from state to state, all states adhere to the following principle: Fees paid in advance to a lawyer (whether described as an advance payment, deposit, minimum fee or something else) belong to the client until the lawyer actually does the work to earn the money. If the work is not performed - regardless of reason - then the lawyer owes his client a refund.
That means that whether you fire your attorney, or your attorney quits, you may be entitled to a refund if you've made advance payments to your lawyer for work he hasn't yet done. You won't, however, get a refund on work that the lawyer has already performed.
Final Accounting
At the conclusion of your relationship with a lawyer, you should expect to receive a final accounting of all legal fees and expenses incurred on your behalf. If you have pre-paid or overpaid your attorney, then that accounting should include a refund. Rules vary as to how quickly an attorney is required to send you that final accounting, but you should expect it within 30 days of the end of the relationship.
In the event your attorney was disbarred or suspended, the local attorney disciplinary board will have rules in place related to fees. In those cases, the attorney will typically be required to automatically refund pre-paid fees to you within 10 days of his suspension or disbarment.
If you disagree with the final bill, you should first contact the attorney, explain why you think you were overcharged, and attempt to amicably resolve the dispute. At the same time, however, you should check with your local bar association to learn whether they offer an arbitration service to help resolve fee disputes. Pay attention to the calendar, because you may be required to request arbitration within a certain period of time after receiving the final bill. If you request arbitration to resolve a fee dispute, do not be surprised if your attorney contacts you to attempt to resolve the issue before your scheduled arbitration hearing. Once the attorney calculates how much time he will have to spend in arbitration, he may decide that it's a smart business decision to simply settle the dispute.