I don’t want to talk about clients that owe you money. If they owe you money and you’ve already done the work then you’ve screwed it up. Sorry, but I really can’t help with that. Cut your losses, cut a deal and get it over. Face it – the client now has leverage and you don’t. You want to be paid and the last thing you want to do is pursue a fee through any sort of collection process. Don’t get into this situation. Don’t extend credit. If you’ve already done it, make the deal, get it done and don’t do it again.
What I’m talking about today is the situation where a client asks for a discount at the outset of the case when fees are initially discussed. It happens all the time. You quote a fee or you require a deposit to the trust account. The client has an argument for paying less – usually that their case will be really simple and easy. What do you do?
You can take one of two approaches. First, you can offer a discount if some element of the service is removed. If the client is willing to, for instance, forgo the pursuit of a contempt action as part of the custody modification then you can reduce the fee accordingly. Or if the client is willing to have the work done by a less experienced associate then you can reduce the fee. There are many possibilities. The key is to hold the line on the fee unless you negotiate a different service than was originally anticipated.
The other approach is to simply say “no.” Prospective clients, especially difficult prospective clients, like to test limits. The fee discussion is one such test. Be tough. Sometimes it gains you respect. If the client is overly difficult at this stage of the game you may be better off without this client.
Years ago, I had a fee discussion with a client in front of another lawyer in my firm. The purpose of the meeting was to discuss the fee but, more importantly, the other lawyer and I had agreed that our additional purpose was for me to demonstrate how to discuss a fee. I did everything more forcefully, more dramatically, than usual because I knew he was watching me and I wanted to make a point. I explained the fee and practically yelled it at the client. The client asked for an adjustment. I said “no” and explained that I didn’t negotiate and that the fee was the fee. I told the client “there would be no quibbling, no dickering, no negotiating.” In fact, I behaved as if I was agitated that any discussion of my fee had even occurred and made it clear that I might not be willing to accept the case.
The client, by the end of the discussion, was begging me to take the case at the fee I quoted. I was surprised at the effect I had on the client. My mission was accomplished with respect to teaching the other lawyer. And the client was grateful that we were willing to do the work.
Hold the line on your fee. Don’t compromise unless the client decides to compromise the services they require.
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Lee Rosen has practiced family law for more than twenty years. With three offices, 