Legal bills can be complicated and, at times, overwhelming to understand. Many clients accept their lawyer’s invoice at face value, assuming that every charge is legitimate and accurate. However, billing errors can and do happen, often leading to clients being overcharged. In this blog post, we'll explore the most common billing mistakes lawyers make, how these errors can affect you, and what you can do to protect yourself from being overcharged.
What It Is: Double billing occurs when a lawyer charges you twice for the same service. This can happen if the same task appears on multiple invoices or if multiple lawyers bill for the same work.
How It Affects You: You end up paying more than you should. If you’re not vigilant, this error can go unnoticed, especially in lengthy invoices with many entries.
How to Avoid It: Review your bill carefully and look for duplicate charges. If you spot any, ask your lawyer for clarification.
What It Is: Overbilling occurs when a lawyer bills more time than they actually spent on a task. This can happen in various ways, such as rounding up time, charging for more hours than worked, or billing for tasks completed in less time.
How It Affects You: Even small increments of overbilling can add up, significantly increasing your total bill.
How to Avoid It: Request detailed bills that break down the time spent on each task. Compare the time billed against the actual work completed, and don’t be afraid to ask questions if something doesn’t seem right!
What It Is: Some lawyers may bill for tasks that should be considered part of their office’s overheads, such as printing, photocopying, mailing, or organising files. These tasks are usually handled by clerical staff, but they may end up billing you for it.
How It Affects You: You might be charged a lawyer's rates for tasks that don’t require their expertise, resulting in inflated bills.
How to Avoid It: Before you hire a lawyer, ask about their billing practices and whether they charge for administrative tasks. If you see these charges, question them and ask to adjust the invoice.
What It Is: Sometimes, lawyers use vague descriptions like “research,” “correspondence,” or “telephone call” without providing specifics about what was done, who was involved, or how long it took.
How It Affects You: Vague billing makes it difficult to understand what you’re being charged for and whether the charges are reasonable.
How to Avoid It: Request detailed invoices that include specific descriptions of each task, the time spent, and who performed the work. This will help you understand exactly what you’re paying for.
What It Is: Lawyers are expected to be knowledgeable in their field. However, some lawyers might charge you for the time they spend researching legal issues they’re unfamiliar with or catching up on relevant case law.
How It Affects You: You end up paying for your lawyer’s education, which can lead to inflated costs, especially if they’re learning on the job.
How to Avoid It: Ensure that your lawyer has experience in the area of law your case involves. If you notice extensive research charges on your bill, ask for an explanation of why they were necessary.
What It Is: This happens when multiple lawyers or staff members within the same firm discuss your case, and each of them bills you for their time.
How It Affects You: Internal conferences can lead to excessive charges, especially if multiple people are involved. You may be billed for several hours for a single conversation.
How to Avoid It: Discuss with your lawyer how internal conferences will be handled and billed. Ask if they will be charging you for multiple staff members attending meetings about your case.
What It Is: Block billing is when a lawyer groups multiple tasks together under one time entry without specifying how much time was spent on each task. For example, a bill might read "research, drafting, and client call – 4 hours."
How It Affects You: Block billing makes it difficult to assess whether the time spent on each task was reasonable, and it can lead to inflated charges.
How to Avoid It: Ask your lawyer to provide itemised bills that separate each task with the corresponding time spent. This transparency will help you determine if the charges are fair.
What It Is: While it’s common for lawyers to bill for travel time, some may charge their full hourly rate for travel, even if they’re not working on your case during that time.
How It Affects You: You could end up paying high fees for time that doesn’t directly benefit your case.
How to Avoid It: Discuss travel billing policies upfront with your lawyer. You can negotiate a reduced travel rate or agree only to be charged for actual work completed during travel time.
What It Is: Disbursements are out-of-pocket expenses your lawyer incurs on your behalf, such as court fees, postage, or expert witness fees. Some lawyers mark up these costs before passing them on to you.
How It Affects You: You could end up paying more than the actual cost of the service or product, inflating your overall bill.
How to Avoid It: Ask for copies of receipts for any disbursements and ensure you’re not being charged more than the actual cost.
Legal billing mistakes can be costly, but by being vigilant and proactive, you can avoid paying for errors that aren’t your responsibility. Understanding the most common billing mistakes lawyers make is the first step in protecting yourself from overcharging. If you suspect you’ve been overcharged, consider seeking the advice of a legal cost expert who can help you review your bill and ensure you're only paying for the services you received.