Does a Lawyer Owe You Money?
It's actually more common than you might think. Here's some advice on how to collect, and about times when you might want to just let it slide.


“While trying to find some guidance for my problem with a law firm that is dragging its feet in paying me for patent illustrations, I came across your 2008 article When Lawyers Don’t Pay their Bills. It is about an attorney who refused to pay a real estate appraiser hired as an expert witness.
“Just like my situation, there was a written agreement requiring payment by the attorney — not his client, but the lawyer. Despite that, in your story and what I am facing, was the same excuse, ‘We haven’t been paid, and so I can’t pay you.’”
“How you got the appraiser paid was so cool. You phoned the attorney’s client who was extremely upset, as they had sent money to the lawyer’s office to pay the bill months earlier! You then had a little chat with the attorney, and in less than 24 hours the appraiser received payment.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“How common is this kind of dishonesty? It must be a real embarrassment to your profession? Do you have any recommendations for the people who accept employment from a lawyer only to get stiffed? Thanks, Tracie.”
Problem Solving or Problem Creation?
Tracie’s correct. There are a lot of things lawyers do which are an embarrassment to the legal profession and a high cost to society.
Strangely, while we are in the problem-solving business, so often instead of seeking fair, common-sense, and economical solutions, we create a giant conflict of interest with our own clients, dragging the case out, running up those billable hours, notably in family law.
I have known divorce attorneys who boast of an immunity to the pain they cause, as “I am only doing what my client wants, expects and is paying for.” Instead of refusing to prolong the misery — telling vengeful clients to cut the crap and get on with life — stables of family law attorneys help their obsessed clients cause the other side as much grief as possible, just as long as their hourly fee is paid. And when the parties run out of money, magically, the case settles.
With the sick rationale, “I am a lawyer, so the rules don’t apply to me,” you’ll find attorneys who take advantage of the people and businesses who help keep their doors open. One guy’s name shows up regularly in my local small claims court, sued by everyone, from his computer and photocopier repair techs, to the janitorial staff, and even by the private investigator who truly “made” one case a million dollar winner, only to be told, “So sue me.”
A Psychologist Shares His Opinion
“This refusal to pay bills is similar to chronic stealing — kleptomania — which is a form of obsessive-compulsive behavior. Stealing takes their attention away from other problems they are suffering from,” observes Austin-based psychologist, Dr. Art Markman.
“Why do people such as this lawyer do these things? In their very twisted logic, it is to make themselves feel as if they are in control of their world. But this behavior is self-destructive and instead of establishing control, the reaction – lawsuits and judgments — actually reduces control.”
What Should Tracie Do Now?
“If I file a complaint with the State Bar, will they do anything to help me? What should I do?”
Without identifying either the attorney or Tracie, I spoke with a representative of her State Bar Association who, as I suspected, told me they would consider this to be a civil matter and would not begin an investigation.
“However, if she sends us a letter outlining the issues, we will forward it to the attorney. Historically, when lawyers hear from us, they wake up and pay their bills. And you would be surprised at how often we speak with people just like your reader.”
I offered to phone the attorney for Tracie — which I am confident would have had a positive result — but she was reluctant to rock the boat. Her course of action would in part depend on the amount owed and the downside of pursuing the lawyer.
The amount was about $500, and by this time it had become an issue of principle. “That can have a cost, a very high cost, depending upon what you do,” I cautioned.
Depending upon how much trouble his firm could cause Tracie through bad-mouthing her work product, this might be a time to write it off and politely refuse any new assignments from his firm. But stirring the social media pot could result in Tracie being sued for a number of things.
“Finally, if they have a new job for you, say, “That’s great, and now we are on a pre-paid basis.”
If Tracie never hears from them again, she will be far ahead.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, "You and the Law." Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift."
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
The Role of the U.S. Dollar in Retirement: Is It Secure?
Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
By Adam Shell
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®
-
Four Reasons It May Be Time to Shop for New Insurance
You may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA