Tuesday, April 21, 2009

How to Bill More than 2000 Hours per Year

How to Bill More Than 2000 Hours a Year. You will be more than noticed--you will stand out if you surpass this goal. It sends several messages to the partners/shareholders: This associate cares enough about our clients to work hard moving the cases forward. It also communicates that this associate does not abandon a client just because it’s 5:00 P.M. Make no mistake it’s not about the hours! It is about client commitment. The associate who bills a lot of hours but fails to move his or her cases forward also gets noticed for the wrong reasons. Send the partner/shareholder that is responsible for the case a rough draft of letters to the client until the shareholder has enough confidence in you that he or she says, “Stop sending all those to me.” That means only send them when something important happens. Usually an associate needs to practice law for 2-3 years before he or she knows how to differentiate what is important from what is not important. Here are some tips to move cases forward which will indirectly cause you to bill more than 2000 hours a year:

a. Keep the Client Advised of the Status of the Case. There are 4 types of letters/emails that MUST be written to clients covering the following topics:

(1) Confirmation Letters/emails. There is a time for a telephone call and a time for a letter. Discuss alternatives with clients, but confirm in writing their choices and any contrary advice you may have given. Discuss personal and sincere efforts to get discovery from opposing counsel, but confirm the result in writing. Discuss settlement terms with opposing counsel, but confirm the bullet points in writing. Always be honest; only confirm what was actually said.

(2) Cover letters/emails. Send a cover letter explaining ANYTHING you send to the client, and the client should get a copy of everything. This gives the client an idea of the work that is being done on the case and its purpose. It is absolutely essential that you explain what you are enclosing. For example, “I have enclosed Interrogatories which I have attempted to answer. Please complete the answers and fax your changes back to me so I can review them and finalize the document. To avoid additional cost to you, I need to finalize them within 30 days. Otherwise, the opposing counsel will write letters and file motions asking that we be ordered to answer or lose the case. We will be required to respond to opposing counsel and this increases the cost to you.”

(3) Status Letters/emails. At least once a month write a letter telling the client what is happening--even if nothing is happening.

(4) Crossroad Letters/emails. Whenever possible, explain the alternatives in your status letter/email Use the ACUP acronym to remember what goes in a crossroad letter.

i. the Alternatives for the client to choose,

ii. the Cost of each alternative,

iii. the Upside and downside of each alternative, i.e., the risk and reward of each alternative, and

iv. the Probability of success of each alternative.

v. For example: “We could file a motion for summary judgment or wait for a trial setting. A motion for summary judgment explains to the judge that the case is so clear that there is no need for a trial--a decision should be made immediately in our favor. This will cost approximately $1,000 to $3,000. The probability of success is low, but it will force the other side to respond with theories of their case and this will help us prepare for trial. If we wait for trial, you will save $1,000 to $3,000, but we may be surprised by something they bring up at trial. The riskier approach is to do nothing, but this is a checkbook issue that you need to decide."

vi. For transactional attorneys, it can be disappointing to everyone if a transaction does not close. However, your job is to protect the client by explaining the risks so the client can make an informed decision whether the risk outweighs the reward. You should explain it verbally and follow it up in writing, and to let the client evaluate that risk. Then, call the client after they receive the letter and discuss these alternatives. Confirm in writing the client’s choice.

b. Keep a current list of all of your active cases on your desk. Before you leave each day, look at the list and see if you failed to perform any necessary tasks and if you remembered to bill clients for work you did for them that day. Then bill the time you forgot to record.

c. Take clients’ calls immediately if at all possible. Otherwise, return the client’s phone calls the same day or the next day at the latest. This is how you let the client know he or she is important to you. Write down your time for all telephone calls.

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