July 5, 2005
Ethics in Billing
I spoke to a group of managing partners last week on the subject of ethics in billing, particularly as it relates to mobile technology.
Most of us know the ABA pronouncements regarding reasonableness, etc. But, did you know there is a growing body of decisions and rulings that indicate that time worked must be measured and recorded contemporaneously to meet the ethical test?
Consider the Washington State Supreme Court's decision: In re Discipline of Dann, 136 Wn.2nd 67 (1998). Barrie Althoff, WSBA Chief Disciplinary Counsel writes “The Court's opinion in Dann also makes it clear that if you bill on a time-spent basis, you must keep contemporaneous and accurate time records. It is not acceptable to attempt to reconstruct your actual time by relying on memory, on miscellaneous unorganized scraps of paper, on comparisons to the time expended by others working on the project, or by evaluating the complexity or extent of the work-product ("I usually take one-half hour to write a letter," or "This is an excellent brief, it must have taken me at least eight hours to write.") to jog your memory.
This need for accurate and contemporaneous records may be most important to lawyers who traditionally bill on a time-spent basis, but it can also be important to others. For example, lawyers who enter a contingent-fee agreement with clients may find that, for whatever reason, they do not complete the representation, yet believe they are entitled to some compensation. If they seek compensation, it will likely be on a quantum merit basis and they will likely need to be able to prove the time they actually spent on the matter. Unless they have kept accurate contemporaneous time records, they are unlikely to be able to do so.
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Filed under Ethics, Policies/ Procedures by Tom Collins