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Nafla Presentation 06.24.10

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1) The document discusses reasonable standards for legal billing, including communicating with clients, providing estimates, and ensuring billing entries accurately describe work performed and its purpose. 2) Factors that determine a reasonable fee include the substantive area of law, attorney experience, expertise, and geographic location. 3) The document cautions against practices like clerical billing, block billing, inadequate descriptions, and excessive internal conferencing, providing examples of each. Proper billing requires using good judgment and advancing the case.

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The Reasonable Factor: Ensuring Legal Fee Recovery Through Reasonable Billing Standards Jacqueline S. Vinaccia, Esq. Lounsbery Ferguson Altona & Peak, LLP Presented to The NALFA Second Annual Los Angeles Attorney Fee Conference: It Pays to Be Reasonable June 24, 2010
WE ALL NEED TO BE PROFITABLE!
WHAT IS REASONABLE? In Ursic v. Bethlehem Mines , the court held that, [d]ouble dipping, in any form, cannot be condoned. Our cases supply no authorities for rewarding non stop meter running in law offices. A Michelangelo should not charge Sistine Chapel rates for painting a farmers barn. 719 F.2d 670, 677 (3d Cir. 1983) (holding that highly skilled attorneys who charge premium rates due to their expertise in an area of law should neither be running up long hours for researching law nor performing routine tasks.)
WHAT IS REASONABLE? Factors that need to be considered in determining a reasonable fee include: Substantive area of law Experience Level (Associate vs. Partner) Level of Expertise Geographic Location
Start at the beginning. COMMUNICATE!
COMMUNICATE With your clients Give timeframe estimates for completing a task. Make sure you are doing what has been requested. Time is money and your clients may not want to pay for certain services. Put it in the Retainer Agreement
Communicate Through Your Billing Descriptions Billing descriptions should be a short explanation of what was done and WHY Use page, name and date references when necessary. When there are multiple drafts or edits, indicate it in the entry.
Improper Billing Practices
CLERICAL BILLING Let your secretary do his/her job! Making Copies Calling Court Reporters Organizing Files Reviewing Case File Scheduling Meetings Loading Documents into Databases
Example of Clerical Billing
BLOCK BILLING Block Billing is the practice by which multiple tasks are lumped into one single time entry. Fee statements (i.e. billing entries) should be itemized by task and not aggregated on a daily basis.
Example of Block Billing
INADEQUATE BILLING General or vague work descriptions are an unacceptable billing practice. Time entries should specify the attorney, the date, the hours expended, and a description of the work done sufficient to evaluate its appropriateness . Start up time.
Example of Inadequate Billing
INTRA-OFFICE CONFERENCING A standard pattern of excessive communicationcannot be considered to be quality billable hours reasonably chargeable to the client. In re Colorado-Ute Electric Association, Inc. 132 B.R. 174, 178 (Bkrtcy.D.Colo., 1991)
Example of Intra-Office Conferencing
USE GOOD BILLING JUDGMENT If I were the client, would I pay this bill if you presented it to me? Is the task beneficial to the advancement of the case? Are your entries sufficiently described?
CONTACT INFORMATION Jacqueline S. Vinaccia, Esq. Senior Litigation Counsel Legal Fee Audit Expert LOUNSBERY FERGUSON ALTONA & PEAK, LLP 960 Canterbury Place, Suite 300 Escondido, CA 92025 E-mail: [email_address] Main Office: (760) 743-1201

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Nafla Presentation 06.24.10

  • 1. The Reasonable Factor: Ensuring Legal Fee Recovery Through Reasonable Billing Standards Jacqueline S. Vinaccia, Esq. Lounsbery Ferguson Altona & Peak, LLP Presented to The NALFA Second Annual Los Angeles Attorney Fee Conference: It Pays to Be Reasonable June 24, 2010
  • 2. WE ALL NEED TO BE PROFITABLE!
  • 3. WHAT IS REASONABLE? In Ursic v. Bethlehem Mines , the court held that, [d]ouble dipping, in any form, cannot be condoned. Our cases supply no authorities for rewarding non stop meter running in law offices. A Michelangelo should not charge Sistine Chapel rates for painting a farmers barn. 719 F.2d 670, 677 (3d Cir. 1983) (holding that highly skilled attorneys who charge premium rates due to their expertise in an area of law should neither be running up long hours for researching law nor performing routine tasks.)
  • 4. WHAT IS REASONABLE? Factors that need to be considered in determining a reasonable fee include: Substantive area of law Experience Level (Associate vs. Partner) Level of Expertise Geographic Location
  • 5. Start at the beginning. COMMUNICATE!
  • 6. COMMUNICATE With your clients Give timeframe estimates for completing a task. Make sure you are doing what has been requested. Time is money and your clients may not want to pay for certain services. Put it in the Retainer Agreement
  • 7. Communicate Through Your Billing Descriptions Billing descriptions should be a short explanation of what was done and WHY Use page, name and date references when necessary. When there are multiple drafts or edits, indicate it in the entry.
  • 9. CLERICAL BILLING Let your secretary do his/her job! Making Copies Calling Court Reporters Organizing Files Reviewing Case File Scheduling Meetings Loading Documents into Databases
  • 11. BLOCK BILLING Block Billing is the practice by which multiple tasks are lumped into one single time entry. Fee statements (i.e. billing entries) should be itemized by task and not aggregated on a daily basis.
  • 12. Example of Block Billing
  • 13. INADEQUATE BILLING General or vague work descriptions are an unacceptable billing practice. Time entries should specify the attorney, the date, the hours expended, and a description of the work done sufficient to evaluate its appropriateness . Start up time.
  • 15. INTRA-OFFICE CONFERENCING A standard pattern of excessive communicationcannot be considered to be quality billable hours reasonably chargeable to the client. In re Colorado-Ute Electric Association, Inc. 132 B.R. 174, 178 (Bkrtcy.D.Colo., 1991)
  • 16. Example of Intra-Office Conferencing
  • 17. USE GOOD BILLING JUDGMENT If I were the client, would I pay this bill if you presented it to me? Is the task beneficial to the advancement of the case? Are your entries sufficiently described?
  • 18. CONTACT INFORMATION Jacqueline S. Vinaccia, Esq. Senior Litigation Counsel Legal Fee Audit Expert LOUNSBERY FERGUSON ALTONA & PEAK, LLP 960 Canterbury Place, Suite 300 Escondido, CA 92025 E-mail: [email_address] Main Office: (760) 743-1201