Fire Your Client - Send That Non-Engagement Letter Now

Media Contacts:


Ed Poll
LawBiz®
President
(800) 837-5880
edpoll@lawbiz.com


For Immediate Release: January 17, 2008

Fire Your Client - Send That Non-Engagement Letter Now
Law Firm Management Expert Urges Attorneys Not to Let Problem Clients Drag Down Their Bottom Line

VENICE, CALIF. January 17, 2008 - Firing your difficult client is probably the best kept profitability secret a law practice can learn. National law firm management expert Ed Poll, J.D., MBA, C.M.C, asserts that problem clients are more trouble than they're worth to a lawyer's bottom line, and urges lawyers to cut their losses with a non-engagement letter.

"Practices will at some point have to handle a problem client with unrealistic expectations or demands," says Poll, founder of LawBiz® Management Co. "Discussing engagement terms will frequently uncover the client who will in the future express irritation, chronically complain, and demand constant attention. These clients take time and energy away from productive and manageable accounts, as well as the ability to bring in new business."

Lawyers generally initiate an attorney-client relationship with an engagement letter that specifies each party's responsibilities for making the engagement a success. The terms of engagement aim to obtain as much information as possible about the goals and expectations of the client. Satisfying a client is the minimum threshold of a legal services relationship. If the lawyer does not accomplish this, the relationship is going nowhere. That's when an open and honest non-engagement letter is the best option.

A clear non-engagement letter, telling the client you are breaking off the relationship before the situation escalates, is practical, smart, and an approach that most clients will respect. There is no set template for what a non-engagement letter should contain, because the reasons for sending it will vary.

Poll suggests a prudent approach would be for the lawyer to state in the letter that he or she:

  • Has reviewed the matter and working relationship with the client
  • Has concluded that it is not possible to continue representation
  • Recommends immediately contacting another lawyer for assistance (with suggested referral to the local bar association)
  • Is not expressing an opinion about the merits of the matter as originally discussed
Consistent with the Rules of Professional Conduct, lawyers need to state in the letter that work has stopped and that the client must pay for work done to date. Should things come to a collection situation, it is important to do whatever is necessary to resolve the conflict. If, after all other efforts to collect have been exhausted, the client is merely interested in a fee discount, give it to get rid of the matter-and the client.

"Lawyers must communicate with clients at their level of understanding. If clients don't recognize the benefits of what their lawyer has done, they will become dissatisfied and no amount of effort will retain them," says Poll. "Firing a client should not be done lightly, but firms grow based on their clients -- so lawyers must focus on clients who have growth potential."


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