Dispute Lawyers Late Fees

Summary

If you have a written agreement with a lawyer, it is crucial to review the terms regarding termination of services and late fees. In this case, the user terminated the lawyers services in writing, but the lawyer continued to charge late fees. The agreement specified that services would cease upon written notice, and any balance would incur interest if unpaid. The user should review the agreement and consider disputing the charges, possibly seeking legal advice to resolve the issue.

Full Conversation

a business lawyer was hired by multiple parties that I was a part of. When I saw that no one was willing to pay the fees I asked the lawyer to stop providing services immediately. Upon doing so he has been charging late fees for 3 years for unpaid fees. What can I do
Did you have a written agreement with the lawyer about the terms of payment and termination of services?
yes
What does the agreement state about termination of services and late fees?
i don’t know
Could you please check the agreement and let us know what it states about termination of services and late fees?
ge * We require a deposit of $*,* prior to commencing any significant work under this Agreement, and this deposit will be applied against attorneys' fees and costs incurred by you. This amount will be credited to your account and we are authorized to pay our attorneys' fees and costs as they are incurred under this agreement. No interest earned will be paid on this account. The initial deposit is refundable. If upon termination of services under this Agreement, the total amount incurred by you for our fees and costs is less than the amount of the initial deposit, the difference will be refunded to you. When this deposit is exhausted, we reserve the right to demand further deposits. We will send you monthly statements indicating attorneys' fees and costs incurred and their basis, any amounts applied from the deposit, and any current balance owed. fI no attorneys' fees or costs are incurred for a particular month, or ifthey are minimal, the statement may be held and combined with that for the following month, unless a statement is requested by you. You agree to pay any balance in full within 30 days after the statement is mailed. Thereafter, interest will be payable on the unpaid balance at the rate of *% per annum. You may discharge us at any time by written notice effective when received by us. Unless specifically agreed by you and us, we will provide no further services and advance no further costs on your behalf after receipt of the notice. If we are
Did you provide a written notice to terminate the services as stated in the agreement?
yes
What was the lawyer's response after you provided the written notice to terminate the services?
That he won’t change the bill
What date did you send the written notice and when did the lawyer respond?
April * * I apologize for not responding sooner. I saw your e-mail last week, but was out of the office on vacation and it has taken a couple days to catch up on things. At our initial meeting last November, we all discussed that there were several entities that needed revisions to their governing documents and/or management restructuring. The specific entities we discussed at that time were: Canopy Club, Inc.; Citral Group, LLC; Goodland Manufacturing, LLC; and Santa Barbara Manufacturing & Supply Co., LLC. We also discussed our representation options, that is, whether we should represent one or more of the entities and/or one or more of the individuals. We ultimately determined—largely due to potential conflicts of interest—that it made most sense to represent the four of you (Ryan, Aaron, **** and Adam) to the extent of your individual interests in those entities. As the situation has unfolded, most of our efforts have related to Canopy Club and, to some extent, Citral Group, LLC. Nevertheless, many of these activities did involve or relate to you and Adam. For example, we reviewed and revised the Consulting Agreement and Licensing Agreement between Canopy Club and WAKKI, LLC; prepared corporate resolutions authorizing those agreements; added you and Adam to the board of directors (ultimately, Adam needed to be removed); and attended and assisted with the City SHO hearings through which Canopy Club’s revised operating plan was approved. While all of you benefitted either directly or indirectly through these services, I realize that some of you may have a greater interest in certain of these matters than the others, and to that extent, I presume you will allocate the billings amongst yourselves in an appropriate manner. In any event, if you and Adam no longer wish to retain our services, we will conclude our representation of the two of you and continue to represent Ryan and Aaron under a separate arrangement (subject to any conflicts raised by our previous representation of you and Adam). I hope this addresses your concerns. Please let me know if you have any other questions or give me a call if you would like to discuss this further.
Did you receive any written confirmation from the lawyer acknowledging the termination of services after you sent the notice?
yes
What was the date of the lawyer's written confirmation acknowledging the termination of services?
April * *
What was the date of the last bill you received from the lawyer?
Aug * *
What services were listed on the last bill you received from the lawyer?
Previous Balance Total Payments Current Billing Finance Charge Balance Due August *, * $*,*.* $*.* $*.* $*.* $*,*.*
What specific services were listed on the bill dated August *, *, that led to the total amount of $*,*.*?
finance charge
What was the date of the last service provided by the lawyer before you sent the termination notice?
April * *
What was the date of the last service provided by the lawyer that was included in the bill dated August *, *?
April * *
What was the date you made the last payment to the lawyer?
Nov * * inital deposit of *,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date of termination of services?
*,*.*
What was the lawyer's response when you disputed the finance charges on the bill dated August *, *?
I appreciate your prior comment. I have received similar objections from Aaron to payment of the charges, so I will address both of your communications here. At the outset, each of you (Ryan, Aaron, Adam and ****) had requested that we represent all of you as a group. This made sense at the time given the interrelated nature of your respective interests in this multi-faceted enterprise. We prepared our representation and fee agreement on that basis and, by that agreement, you all agreed to be jointly and severally responsible for payment of our fees and costs. Furthermore, we had incurred the bulk, if not all, of the charges before either of you advised us that you no longer desired our representation. Whether and how you decide to allocate responsibility for our charges amongst yourselves (either now or previously) does not affect your individual obligation to pay those amounts to us. I hope this clarifies our position in this regard. Given the substantial time that has elapsed since we concluded our representation, we need to determine how you intend to resolve your account. If you are unable to make payment in full, we would hope you can commit to significant monthly payments. Alternatively, we may entertain proposals to release some of you from liability for these charges in exchange for payment of a portion of the amount owed. While any such proposal would be subject to approval by our partners and any release from us may not shield you from potential liability to the non-released members of your group for contribution, please let me know if you wish to pursue such an arrangement. Again, as I stated in my e-mail of September *, *, if we do not hear from you or if you do not make acceptable arrangements for payment of your account, we will have no alternative but to commence collection proceedings.
Did you receive any written communication from the lawyer after you sent the termination notice and before the bill dated August *, * was issued?
no
What was the total amount of the lawyer's fees and costs incurred by you as of the date of termination of services?
*.*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you sent the termination notice?
*.*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
*.*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the last bill?
*,*.*
What was the date of the last service provided by the lawyer that was included in the bill dated August *, *?
It’s just itemized statements they sent every month
What was the date of the first itemized statement you received after the termination of services?
April * *
What was the total amount due on the first itemized statement you received after the termination of services?
*,*.*
What was the date of the last service provided by the lawyer before you sent the termination notice?
April *,*
What was the total amount due on the last itemized statement you received before sending the termination notice?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you sent the termination notice?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the last bill?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you sent the termination notice?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the last bill?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you sent the termination notice?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
*,*
What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the last bill?
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What was the total amount of the lawyer's fees and costs incurred by you as of the date you received the lawyer's written confirmation acknowledging the termination of services?
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