“What is your billing rate?”
Answer:
David Zachary Kaufman’s billing rate is normally $390.00 per
hour. Associates, of counsel and other attorneys who may be
involved in your case will bill between $150.00/hour and
$300.00/hour depending on their experience and what tasks they
are asked to do. Paralegals will bill between $75.00 and
$125.00 per hour, again depending upon their experience and
what they will be asked to do.
“Do you ever reduce your fee?”
Answer:
Under certain circumstances Kaufman Law is willing to engage
in creative billing. Usually these cases have some redeeming
social value (in the sole opinion of David Zachary Kaufman) or
make some sort of provision for a large bonus upon success. But
the client must be prepared to advance the costs of the lawsuit.
These costs include (but are not limited to) court filing fees,
service costs, faxing copying and scanning costs, the costs of
depositions and travel (if needed) and the cost of expert
witnesses.
“Does Kaufman Law take cases on contingency?”
Answer:
Kaufman Law will, under certain circumstances, take a case on
contingency or use some other form of creative billing. But,
even on a pure contingency case, you will have to advance the
costs of the lawsuit. These costs include (but are not limited to)
court filing fees, service costs, faxing copying and scanning
costs, the costs of depositions and travel (if needed) and the cost
of expert witnesses. It is my experience that having a firm stake
in the litigation increases the sense of teamwork that successful
litigation requires. If you are unwilling to do this, you will not
be happy with the results of the case.
“We’re all businessmen. Why do you need such a large retainer?”
Answer:
I am in the business of minimizing your business’s risk,
improving your business’s return, protecting your
assets, and getting you out of trouble. What does it say about my
abilities as an attorney if I can’t (or won’t) protect myself and
minimize my own risks?
“What is a retainer?”
Answer:
A retainer is a deposit, placed into a state-regulated escrow
account, over which tight controls are maintained, governed by
strict rules, including that I cannot take money from the escrow
retainer account and deposit it into my operating account until I
have earned it by performing the services I promised. If I take
an up-front “prepayment” and put it right into my operating
account, the powers that be in Virginia, Maryland and
Washington, D.C. (the jurisdictions where I am admitted to the
Bar) would view that as illegal. In addition, before I can
withdraw money from the escrow account and move it to my
operating account I must send you an invoice and have waited a
reasonable time for the client to question or protest before I can
make the transfer of client funds into my operating account.
“What is an `Evergreen’ retainer and why do you use it?
Answer:
Kaufman Law uses an “evergreen” retainer system whereby you
(the client) make a rational up-front deposit, which is depleted
periodically by invoices and replenished following the rendering
of an invoice. Thus, for example (using round #s), a client may
start off a matter by making a $10K retainer deposit; the first
month’s invoice is for $2,500 in time charges and disbursements;
10 days later I transfer the funds out of escrow and into my
operating account; presumably before the time comes for me to
render the next invoice, I receive the client’s replenishment
check for $2,500, bringing the retainer deposit account back to
the designated $10K level, keeping it “evergreen.” This process
continues, with the retainer account balance intended never to
dip lower than one month’s billings and not for more than a week
or two at a time.
Thus, the lawyer and client both are protected by the process —
indeed, terminating the relationship is far easier for the client
than for the lawyer; if the client is dissatisfied, there likely will
be a refusal to replenish, and so not too much money would be
“at risk”; the terms of the retainer agreement include that at the
conclusion of the matter for whatever reason and in whatever
fashion, the lawyer gets paid for work performed and the
remaining balance gets cheerfully refunded directly to the client;
the lawyer has the incentive to keep each month’s bills rational
or the client may choose to protest, refuse to replenish, or
terminate the relationship.
