The Reasonable Factor:The Reasonable Factor:Ensuring Legal Fee Recovery Ensuring Legal Fee Recovery

Through Reasonable Billing StandardsThrough Reasonable Billing Standards

Jacqueline S. Vinaccia, Esq.Jacqueline S. Vinaccia, Esq.Lounsbery Ferguson Altona & Peak, LLPLounsbery Ferguson Altona & Peak, LLP

Presented to Presented to The NALFA Second Annual Los Angeles Attorney Fee The NALFA Second Annual Los Angeles Attorney Fee

Conference: “It Pays to Be Reasonable”Conference: “It Pays to Be Reasonable”June 24, 2010June 24, 2010

WE ALL NEED TO BE WE ALL NEED TO BE PROFITABLE!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 farmer’s 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….Start at the beginning….COMMUNICATE!COMMUNICATE!

COMMUNICATECOMMUNICATE With your clientsWith your clients

Give timeframe estimates for completing a Give timeframe estimates for completing a task.task.

Make sure you are doing what has been Make sure you are doing what has been requested.requested.

Time is money and your clients may not want Time is money and your clients may not want to pay for certain services.to pay for certain services.

Put it in the Retainer AgreementPut it in the Retainer Agreement

Communicate Through Communicate Through Your Billing DescriptionsYour Billing Descriptions

Billing descriptions should be a short Billing descriptions should be a short explanation of what was done and explanation of what was done and WHYWHY

Use page, name and date Use page, name and date references when necessary.references when necessary.

When there are multiple drafts or When there are multiple drafts or edits, indicate it in the entry.edits, indicate it in the entry.

Improper Billing PracticesImproper Billing Practices

CLERICAL BILLINGCLERICAL BILLINGLet your secretary do his/her job!Let your secretary do his/her job!

Making CopiesMaking Copies Calling Court ReportersCalling Court Reporters Organizing FilesOrganizing Files Reviewing Case FileReviewing Case File Scheduling MeetingsScheduling Meetings Loading Documents into DatabasesLoading Documents into Databases

Example of Clerical BillingExample of Clerical Billing

BLOCK BILLINGBLOCK BILLINGBlock Billing is the practice by Block Billing is the practice by

which multiple tasks are lumped which multiple tasks are lumped into one single time entry.into one single time entry.

Fee statements (i.e. billing Fee statements (i.e. billing entries) should be itemized by entries) should be itemized by task and not aggregated on a task and not aggregated on a daily basis.daily basis.

Example of Block BillingExample of Block Billing

INADEQUATE BILLINGINADEQUATE BILLING General or vague work descriptions General or vague work descriptions

are an unacceptable billing practice. are an unacceptable billing practice. Time entries should specify the Time entries should specify the

attorney, the date, the hours attorney, the date, the hours expended, and a description of the expended, and a description of the work done work done sufficient to evaluate its sufficient to evaluate its appropriateness .appropriateness .

Start up time.Start up time.

Example of Inadequate Billing Example of Inadequate Billing

INTRA-OFFICE CONFERENCINGINTRA-OFFICE CONFERENCING

“ “A standard pattern of excessive A standard pattern of excessive communication…cannot be communication…cannot be considered to be quality billable considered to be quality billable hours reasonably chargeable to hours reasonably chargeable to the client.” In re Colorado-Ute the client.” In re Colorado-Ute Electric Association, Inc. 132 B.R. Electric Association, Inc. 132 B.R. 174, 178 (Bkrtcy.D.Colo., 1991)174, 178 (Bkrtcy.D.Colo., 1991)

Example of Intra-Office ConferencingExample of Intra-Office Conferencing

USE GOOD BILLING JUDGMENTUSE GOOD BILLING JUDGMENT

If I were the client, would I pay If I were the client, would I pay this bill if you presented it to me?this bill if you presented it to me?

Is the task beneficial to the Is the task beneficial to the advancement of the case?advancement of the case?

Are your entries sufficiently Are your entries sufficiently described?described?

CONTACT INFORMATION

Jacqueline S. Vinaccia, Esq.Senior Litigation Counsel

Legal Fee Audit ExpertLOUNSBERY FERGUSON ALTONA & PEAK, LLP

960 Canterbury Place, Suite 300

Escondido, CA 92025

E-mail: jsv@lfap.com

Main Office: (760) 743-1201