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Keeping Legal Costs Down
By David Najor :: Monday, July 14, 2008 :: 75960 Views :: Article Rating :: Law & Order, Business & Finance

For many Chaldean entrepreneurs, the idea of consulting a lawyer conjures up frightening visions of skyrocketing legal bills. While there's no denying that lawyers are unnecessarily expensive Chaldeans can employ these cost saving tips to keep cost down. 

First and foremost find an attorney you are comfortable talking with and can comfortably share how you feel.  The lawyer works for you and if they are intimidating or unwilling to make you comfortable don’t even begin discussing the case with them.  Lawyers are a dime a dozen, but each is betting on the fact that you will not do your research or spend the time to clarify the working arrangement, especially when it comes to billing.  

Most lawyers will charge a flat one-time fee for routine matters, such as forming a corporation or LLC, but will not volunteer a flat fee unless you ask for it. Be sure to ask if the flat fee includes disbursements (the lawyer's out-of-pocket expenses, such as filing fees and overnight courier charges), and when the flat fee is expected to be paid. Many attorneys require payment of a flat fee upfront, so that they can cover their out-of-pocket expenses. You should always ask to "hold back" 10 to 20 percent of a flat fee, though, in the event the lawyer doesn't do the job well.

Lawyers will be reluctant to quote flat fees if the matter involves litigation or negotiations with third parties. The reason for this is bluntly stated by Chaldean Attorney, Joanne Mammo: “if the other side's lawyer wants to fight over every comma and semicolon in the contracts, then I can't control the amount of time I will be putting into the matter, and will end up losing money if I quote a flat fee." In such situations, you will have to pay the lawyer's hourly rate. You should always ask for a written estimate of the amount of time involved, and advance notice if circumstances occur that will cause the lawyer to exceed his or her estimate.

If a lawyer asks you for a retainer or deposit against future fees, make sure the money will be used and not held indefinitely in escrow, and that the lawyer commits to return any unused portion of the retainer if the deal fails to close for any reason.

Ways To Keep a Lid on Costs

Start by learning about the various ways lawyers bill their time:

Hourly or per diem rate. Most attorneys bill by the hour. If travel is involved, they may bill by the day.

Flat fee. Some attorneys suggest a flat fee for certain routine matters, such as reviewing a contract or closing a loan.

Monthly retainer. If you anticipate a lot of routine questions, one option is a monthly fee that entitles you to all the routine legal advice you need.

Contingent fee. For lawsuits or other complex matters, lawyers often work on a contingency basis. This means that if they succeed, they receive a percentage of the proceeds--usually between 25 percent and 40 percent. If they fail, they receive only out-of-pocket expenses.

Value billing. Some law firms bill at a higher rate on business matters if the attorneys obtain a favorable result, such as negotiating a contract that saves the client thousands of dollars. Try to avoid lawyers who use this method, which is also sometimes called "partial contingency."

If you think one method will work better for you than another, don't hesitate to bring it up with the attorney; many will offer flexible arrangements to meet your needs. When you hire an attorney, draw up an agreement (called an "engagement letter") detailing the billing method. If more than one attorney works on your file, make sure you specify the hourly rate for each individual so you aren't charged $200 an hour for legal work done by an associate who only charges $75.

This agreement should also specify what expenses you're expected to reimburse. Some attorneys expect to be reimbursed for meals, secretarial overtime, postage and photocopies, which many people consider the costs of doing business. If an unexpected charge comes up, will your attorney call you for authorization? Agree to reimburse only reasonable and necessary out-of-pocket expenses.

No matter what type of billing method your attorney uses, here are some steps you can take to control legal costs:

Have the attorney estimate the cost of each matter in writing, so you can decide whether it's worth pursuing. If the bill comes in over the estimate, ask why. Some attorneys also offer "caps," guaranteeing in writing the maximum cost of a particular service. This helps you budget and gives you more certainty than just getting an estimate.

Learn what increments of time the firm uses to calculate its bill. Attorneys keep track of their time in increments as short as six minutes or as long as half an hour. Will a five-minute phone call cost you $50?

Request monthly, itemized bills. Some lawyers wait until a bill gets large before sending an invoice. Ask for monthly invoices instead, and review them. The most obvious red flag is excessive fees; this means too many people--or the wrong people--are working on your file. It's also possible you may be mistakenly billed for work done for another client, so review your invoices carefully.

See if you can negotiate prompt-payment discounts. Request that your bill be discounted if you pay within 30 days of your invoice date. A 5-percent discount on legal fees can add thousands of dollars to your yearly bottom line.

Be prepared. Before you meet with or call your lawyer, have the necessary documents with you and know exactly what you want to discuss. Fax needed documents ahead of time so your attorney doesn't have to read them during the conference and can instead get right down to business. And refrain from calling your attorney 100 times a day.

Meet with your lawyer regularly. At first glance, this may not seem like a good way to keep costs down, but you'll be amazed at how much it reduces the endless rounds of phone tag that plague busy Chaldeans and attorneys. More important, a monthly five- or 10-minute meeting (even by phone) can save you substantial sums by nipping small legal problems in the bud before they have a chance to grow.

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St. Thomas, MI USA

St. Thomas Chaldean Catholic Church
6900 Maple Rd.
West Bloomfield, MI 48322
Tel: (248) 788-2460
Fax: (248) 788-2153

Founding Pastor:
Rev. Hanna Cheikho

Current Pastor:
Rev. Frank Kalabat

Parochial Vicar:
Rev. Jirjis Abrahim

Rev. Emmanuel Rayes, Retired  


Rev. Frank Kalabat
 

Rev. Frank Kalabat was born in 1970 in San Diego, California and entered St. Francis Seminary of San Diego, California.  The admission to the Catholic seminary made him the first born U.S. Chaldean to enter an American seminary.  In 1992, Fr. Kalabat continued his studies at Sacred Heart Major Seminary in Detroit, Michigan.  In July 1995, shortly after graduation he was ordained as priest by His Excellency Bishop Ibrahim N. Ibrahim.  

Fr. Frank chose Mother of God Parish in Southfield, MI. as his first assignment serving the Chaldean community as an associate pastor for half a decade.  In 2001, Fr. Kalabat was elected to serve as Pastor of St. Tomas Parish in West Bloomfield, Michigan where he remains today.   

Rev. Jirjis Abrahim

Rev. Jirjis Abrahim was born in Telkaif, Iraq in 1942. Upon graduation Fr. Abrahim was admitted to St. Peter Chaldean Seminary in Baghdad, Iraq.  After a decade of studies and numerous degrees, Fr. Abrhim was ordained a priest in 1967.  He chose to continue ministering in Baghdad, Iraq.  There he was appointed the headmaster of the catechism at Mother of Sorrows Cathedral.  Fr. Abrahim also assisted St. Therese Church in Baghdad until 1978.  Afterward he was asked to assist St. Joseph Church in Baghdad and was appointed Parochial Vicar from 1978-1992. 

In 1992, Fr. Abrahim was called upon to assist the growing Chaldean population in Michigan.  Upon his arrival he was assigned to St. Joseph Church in Tory, Michigan.  Two years later Fr. Abrahim was asked to become the pastor of a Parish community in Windsor, Canada  where he remained the parish pastor until 2001.

Continuing demographic changes in Michigan required Fr. Abrahim to return to St. Joseph Parish in Tory as a Parochial Vicar, where he remained until 2006.  In 2006 he was elected to St. Thomas Parish as Parochial Vicar in West Bloomfield, MI. where he currently serves the Chaldean community.

 

Rev. Emmanuel Rayes

Rev. Emmanuel Rays was born in Araden, Iraq in 1930.  He studied at St. John Dominican Seminary and was ordained to the priesthood in 1954.  The Chaldean catholic ambassador ministered in northern Iraq from 1954-1963, in Syria and Lebanon from 1963-1980, and in the United Stated from 1980 to the present day.
 
Form 1980-1983, he was appointed associate pastor at Mother of God Parish in Southfield, Michigan.  From 1983-1989 he served as pastor at Sacred Heart Parish in Detroit, Michigan.  During the early 1990’s he ministered to the Chaldean community in Farmington Hills and was at St. Joseph Parish in Tory where he was Parochial Vicar until 2000.

Although Fr. Rayes retired in 2001, he remains active in serving the community.  He is the author of many articles in Arabic and is the editor-in-chief of the Al Mishal and Al-Tariq magazine.  He has translated and continues to translate many books from French and English into Arabic.