Not every attorney's fee will eventually be paid.
When a lawyer communicates with a client or client about a legal service contract and payment arrangement, in addition to the traditional idea of "giving money first and then fighting a lawsuit", more operations are to pay part of the contract first, and then pay the other part after the project is completed, and even depending on whether the project is successful, a certain VAM element is introduced, for example, for a listed project of an enterprise, 1 million yuan will be paid after the contract is signed, 1 million yuan will be paid after the enterprise is listed, and only 300,000 yuan will be paid if the enterprise fails to go public. (Due to the long frontline and long consumption time of listed projects, many of which last for several years, the above payment standards are not inflated).
In some legal service contracts, it is agreed that the lawyer's fee will be paid after the completion of the project. For example, the new business of some companies, ** and financial products is agreed to be undertaken by the new entity, so there will be no conditions for the payment of attorney fees before the completion of this business. If the project fails, it is allocated by the initiator according to the agreement.
There are three common cases of non-payment and delay of attorney fees by clients in the market
First, the project failed. Although the legal service contract will stipulate that the corresponding legal fees will also be paid if the project fails. However, at this time, due to the disappointment of the customer's business expectations, even if there is a contractual constraint, the possibility of uncertainties in the customer's payment will increase from the perspective of business and practice.
Second, there is a significant change in the client's financial situation. For example, some start-ups are used as legal services for clients. After completing a round of financing and closing a case, its production and operation situation or cash flow is far lower than expected when signing the legal service contract, and the client is no longer willing to pay such a large amount of legal fees.
Third, there is a change in the person in charge of the customer and the management. This situation is common in state-owned enterprises, and after the change of leadership, there is a high degree of uncertainty about whether to recognize the predecessor's contract. As for the reason, just find one: the change in the group's management system, the change in the spirit of state-owned assets supervision, and the recent ...... of being audited by the tour
The more astute reader can conclude that the above three reasons are objective reasons on the client's side, and are not beyond the influence of the lawyer. So what can a lawyer do in such a situation?
First, prevent the crisis from getting worse and resolve the crisis in advance. For example, the case project has largely settled and is still waiting for the final process. However, the customer will soon change the contact, and the customer's funds will soon be used in large amounts, etc., in this case, you can consider whether you can pay in advance for polite communication with the customer. If the relationship is good, you can consider revealing your concerns to the other person with dignity. They are all mature human beings who walk in the business world, and if there is a good relationship to pave the way, it is likely that the concerns of lawyers can be understood.
Second, collect and analyze information to identify whether there is indeed a temporary difficulty, subjective delay, or refusal to pay. A commercially sensitive lawyer can identify the difference between the above three types of situations through communication with clients. If it is indeed a short-term difficulty, the best strategy is of course to be patient and give regular kind reminders. It's a great opportunity to get closer to your customers and create repeat customers. If it is the latter two, you need to combine the cards in your hand to do a reasonable game and struggle:
For example, the client is still very dependent on your daily legal advice, and when he needs it, he can disappear for a period of time, although there is a delay, but afterwards provide a quality assurance answer: the signal is obvious, your priority has been reduced with me, but my integrity and quality as a lawyer have not been reduced, as for why the priority is low, you want to go.
The above is an example, and lawyers can consider countermeasures based on their own bargaining chips. In the end, the last resort is of course to sue, but if there is no other feasible way and the psychological construction of not doing business back, then be brave enough to do it.
No lawyer wants to see their fees in arrears, but it inevitably forms part of their professional life. Lower your expectations, be cautious, and be grateful, and you may be able to go further down this path.
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