In today’s economic climate, attorneys must be mindful of their rights and obligations concerning collection of fees from former clients. This article explores these issues and also highlights a significant bill under consideration that will affect all attorneys, if passed.
Attorneys are in a better position than the average creditor when it comes to getting paid. In most instances, an attorney has the age-old right to a retaining lien; that is, to keep the client’s file (or more aptly described—the fruits of his labor) until payment is made. The attorney also has a right to seek a “charging lien;” that is, a lien against the proceeds that the client might ultimately recover from the opponent. With a charging lien, the attorney can procure a portion of the proceeds directly from the payor, preventing the payment to the former client until the attorney is paid.
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