Page 20 - Sonoma County Gazette April 2019

Dear Readers: Do you have a legal question on your mind? If so, please email me at debra@newbylawoffice.com. Your name will remain confidential. This Q & A Legal Column is intended as a community service to discuss general legal principles and does not create an attorney-client relationship.
Dear Debra: I am going through a nasty divorce so I hired a family law attorney last month. The initial retainer was $3500, which I paid. I just received the first itemized bill, and all of the $3500 is spent (and now the attorney wants another $5000)! When I reviewed the itemized bill, it looks like the attorney is charging me outrageous amounts, like $100 an hour for a secretary to organize and set-up my file, $150 an hour for the paralegal
to review the file, and of course the whopping $400 an hour every time the attorney touches the file. Are there any rules or guidelines regarding how attorneys can bill? Signed: Soon-to-be Divorced (and Broke)
Dear Soon-to-Be: You’ve opened a virtual Pandora’s Box. Each attorney sets their own hourly billable rate and there is quite a range in how much attorneys may charge for their legal services. With that said, however, there are some specific rules that come into play.
All attorneys, no matter their practice area, are governed by a Code of Ethics, which is overseen by The State Bar of California (calbar.ca.gov). Rule 4-100 addresses what is considered an “illegal or unconscionable” fee. Also, CA Business & Professions Code sec. 6148 generally addresses the statutory standards for fee agreements for legal services over $1000. Check out these rules/laws on-line.
Below are a few practical tips that you may wish to consider:
1) When you first consult with an attorney, be brave and ask during that initial consultation about their billing rates and practices. Their rates and costs should be outlined in the Retention Agreement that you sign, and should address items such as costs and billable rates for each “professional level” in the office (paralegal, attorney, etc.).
2) Generally, improper billing practices may include: i) billing for overhead, administrative and clerical charges (unless clearly disclosed in the Retention Agreement); ii) time spent on billing and collections; iii) an un-itemized bill; iv) excessive time to complete a task or excessive staffing; and v) time spent on training new lawyers.
3) Review the itemized bill as soon as you receive it. If something seems amiss, call the lawyer’s office and openly discuss your concerns. Most lawyers will explain their bill and will admit mistakes, which do occur. Discuss billing disputes early-on in the process, as the attorney’s billing pattern will likely continue for future bills and your angst will likewise build up.
If you are still not satisfied after you discuss the billing with your attorney, another option is to contact the Sonoma County Bar Association Fee Arbitration Program. Go to their website (sonomacountybar.org) and click on the tab for Fee Arbitration to download forms and information. Or, call 707- 542-1190, Extension 19 and leave a message for Win, a pleasant and well-versed paralegal who will return your call. Volunteer attorneys and business people serve as an arbitrator/neutral and hear both sides of the dispute (the attorney and the client’s) in an informal setting and make a decision on the amount of attorney fee that is due. The arbitrator’s decision/award is advisory only, unless the parties agree to make it binding. The fee for the Program is based on the amount in dispute, and is calculated as follows:
Our print edition pages can only hold PART of what comes our way...
• If amount disputed is $1 to $5,000, the fee is $250 plus 5% of the disputed amount.
all month long. Visit our website @
• If amount disputed is $5,001 to $ 9,999, the fee is $500 plus 5% of the disputed amount.
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The most important factor in an attorney-client relationship is “trust”. Open up the lines of communication with your attorney and clearly communicate your concerns. If you think there are grounds for improper billing and your attorney is not responsive, arbitrate the matter.
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Debra A. Newby is a member of the California, Texas and Sonoma County Bar Associations and currently maintains an active law office in Santa Rosa She can be reached via email(debra@newbylawoffice.com), phone (707-526-7200), or fax (526-7202).
• If amount disputed is $10,000 and above, the fee is $500, plus 7% of the disputed amount.