Times remain tough for law firms.  The legal sector lost another 1,100 positions in April  — making it the second month in a row of four-digit losses.  Since April 2009, the legal sector has lost a total of roughly 28,000 jobs.   It is no surprise some firms are choosing to sue clients for non-payment rather than work things out.  Unfortunately, as Squire Sanders & Dempsey recently found out, such suits usually lead to a malpractice claim.  Squire Sanders waited until the unpaid tab reached $1.2 million before suing. 

In an article published by the Daily Business Review, Steve Zelkowitz, managing partner of GrayRobinson’s Miami office, said “the trend of clients suing law firms, which are considered deep pockets, is growing, particularly when a firm loses a case.”  According to Zelkowitz, “[o]nce clients lose, they will do anything to try not to pay.”   Zelkowitz also said disputes over unpaid bills are “definitely becoming more prevalent, and law firms need to be more vigilant.  No one should get more than 90 days behind with clients.”  All words of wisdom. 

Thankfully, there exist risk management solutions that immediately address “slow pay” or “no pay” law firm clients.