gettIngPaIdformedIatIon : afeWstrategIestomaxImIzeCoLLeCtIon
Mediation & arbitration Section Chairs : GeraldAlbrecht – AlbrechtMediationServices , AmberBoles — LawOfficeofAmberBoles & LaraTibbals — TibbalsMediation , LLC
Unless you only mediate pro bono , you probably like to get paid for your mediation services . We all know how it goes : you work hard to help the parties try to reach a deal and then you present the parties ( or , more likely , their counsel ) with invoices for your services after the conclusion of the mediation conference . And then , you wait to get paid . Most of the time , one or both parties ( counsel ) pay within 15 – 30 days , but not always . This article is intended to help you by offering some strategies to increase your prompt collections rate .
Engagement Letter
One strategy is to have the parties ( or their counsel ) sign an engagement letter , specifying the minimum fee and , possibly , requiring parties to bring checks with them for at least that minimum fee . Engagement letters can also include prevailing party attorney ’ s fee / cost of collection terms in the event of failure to pay ( or to pay promptly ). Some Engagement Letters purport to place the burden of payment on counsel , instead of the client . 1 Personally , if I used engagement letters , 2 I would avoid this term , because I wouldn ’ t want it to lead some attorneys not to use me .
Require Deposits Another strategy is to require the parties to submit deposits in advance of the mediation for the amount of your minimum charge or for a larger amount ( with your promise to refund any unused amounts ). I personally have not tried this approach because of my sense that the market would not bear it ; perhaps your experience is different . 3 You also will have to be careful about how you hold such deposits . For example , I would NOT place them in my attorney trust account , since these are not funds received in connection with my representation of a client . 4
Require Payment Authorizations
This is what I have done for the past 18 months , to great success . Immediately after parties select me for mediation , I send them two documents : the mediation confirmation ( date , time , location / mode ; recitation of mediation fees calculation , split , and applicable minimum ; and late cancellation / postponement fees ); and a Payment Authorization form . In that latter form , counsel ( or the party ) is required to identify how they intend to pay their share of the mediation fees ( check ; credit card ; Zelle ® ; PayPal ® ), AND they are
mostofthetime , oneorbothparties ( counsel ) paymediationfeespromptly , butnotalways .
required to provide me with a signed credit card authorization as back-up . The form states that the credit card will only be used if ( a ) that is what they selected above or ( b ) I have not received payment through the other selected means within 15 calendar days after I have sent the invoice . Since I have begun requiring these forms — and , if I don ’ t have a signed form with the credit card info before the mediation , I require it to be completed before the mediation starts — I have had essentially no collections that went past 16 days after invoice . 5
In conclusion , any ( or a mix ) of these strategies can help you increase your prompt collections rate . Just find the way that works for you . n
1
Recall that , typically , as a matter of agency law , since counsel is the disclosed agent of a disclosed principal , counsel is not on the hook for expenses counsel incurs on behalf of the client .
2
Whether this last term is enforceable may be moot , as I imagine relatively few lawyers would happily agree to shoulder the cost of mediation
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