Worst of CostaLuz Lawyers problems

Legal tip 1146. WORST OF COSTALUZ LAWYERS´ PROBLEMS 
12 May 2014 @ 15:34 
 

Hi Maria

If people owe you money and have not/will not pay YES, name and shame publicly! You are a kind hearted and hardworking solicitor and you deserved to be paid for the work you have done...no question. You are a business not a charity.

I hope you get your fees immediately...after naming and shaming of course :)

Dear you both:

Thanks for your kind words.

Initiall, I am reluctant to do it and want to check if that is in accordance with our ethical / professional code.

I will keep the assistance up here the best I can!

Love,

Maria

No question Maria......... Name & shame them now, not only will they pay you to ‘stop and desist’ but it also serves to warn other  honest  businesses that they should avoid the person or entity that have abused your professional standing. Point out your intentions to the offending party and inform them that once their name is posted on the internet – it is almost impossible to remove and it will stay on indefinitely for the world to see.

The term  ‘cowboys’ is applied if we ask for money in advance and if professional ethics don’t allow us to ask for interim payments for on-going services, it is often seen as a weakness that  can be exploited.

If we have any trouble getting a final payment  we don’t mess about any more, we just issue a ‘statutory demand’ notice for UK originated bad debt – brutal but necessary.

We have better things to do with our time than chase thieves around who failed to adhere to their contractual obligations.

Thanks Woodbug.

The root of the problem has been that Lawyers cannot close a final price from day one as it depends on Appeals, interests granted, applicable interest rates, partial or total unexpected settlements, interpretation of costs by Judge, related expenses and disbursements....

We alwways offered though a very clear information at the beginning of every case, even with the  official spreadshseet of minimum fees by the  Cadiz Bar Association ( which is not usual among Lawyers-- need to add!)and all the references for them to figure out at every step how much was fees were involved. If they asked, we always answered on potential final fees, according to estimations.

  At the beginning, there were cases where we committed to not ask for provision of funds at the Appeal level ( and even at Supreme Court) if we had to deffend a case lost by ourselves but of course we never offered a NO WIN NO FEE, never compromised the final fee we are due for long years of work, communications, phone calls, emails, translations, advising.... It is just recently that for a short period of time and EOS members and old CLL clients, we are offering NO WIN NO FEE for the Action against the Bank. It was never this way before. This is just a limited offer.

It is very hard to believe!, as some of these people where saved from payment of evn  600k €.-1.000.000€  which could have destroyed their financial lives. 

I am consulting with Barristers, Bar association and EOS people on this and will make a decission. The solution is possibly to post them on our website?

It's not getting much easier is it Maria? Long gone are the days when you could do business on a handshake and know that the person you were dealing with would behave in an honourable manner, you have to cover your back now and assume every one is the same, because of the few rotten eggs.

One answer maybe a running account. We have used this system for years and each time  there is a variation of agreement or contract, the running account shows the original fee agreement, interim payments and the new added costs incurred as a result of the clients instructions.

This would keep the client fully aware of his/their indebtedness and a note could be appended saying ' Please confirm acceptance of this revised fee note - If we do not hear from you within 21 days we will assume acceptance'. The account sum would then be absolute and could not be disputed. 

Dear Woodbug!

Thanks for the advise.

Since Keith Rule joining the team ( and as the expriences business man that he is) we have now new systems but, that running account is certainly a great idea. I am commenting Keith on this.

I am investigating also on sending their names to creditors lists as a wat to avoid these happening to other people.

I'm pleased tp share Maria. Keith Rule will know if Spanish law has a similar system to the stautory demand and winding up/bankruptcy procedure. A statutory demand in UK can be issued without a court order and usually gets a result. Its a shame that you can't have a non-jurisdiction clause in your contracts so you could take advantage of the UK fast-track systems as well!!

Good luck!

Thanks Woodug again.I am sure Keith is taking good note of this all!!! ;)

;)

Congratulations!

Maria

We are preparing lawsuits against these clients, unfortunately, as every possibility for negotations result on them feeling they are right and imnposing more and more conditions on us.

That also damages our contribution in EOS as we are short budgeted and cannot delivery as much as the free advise/legal orientation as we have been in the past.

Steps will be: 

1.- Monitorio case in Spanish Court for Unpaid professional accounts, which is a quite summary and fast procedure

2.- Once we have the lawsuit, we will contact debtors though UK Debt agents

3.- Judicial  Enforcement against assets  in the UK/ Ireland/any other country through new European ways

It is a shame, but we have offered all possibilities for negotiation, payment in instalments, some reduction and think we cannot keep exercising good will for ever with those are not ready to compromise a cent.

Anyhow!

Maria

This message was last edited by mariadecastro on 16/06/2014.

Hi Maria, It is a disgrace that you have to now work very hard again to get your money that you have already earned.

Once you have an EEO from Spain you should be able to enforce it very quickly with an individual bankruptcy petition or in the case of a company, a winding up order, in UK see:

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part74#IDAUU3HC

Don't give up with this - if they have any asset and the debt is in excess of £750.00 you have an excellent chance.

Good Luck

Woodbug

Thanks Woodbug.

Yes, it is a a disgrace, but, we are determineded to cash every single cent. It is long years of work of many people around

Cheers

Maria

Files being sent to UK debt collectors now.

I wish defaulters had reacted before this but, unfortunately, it is not being the case.

In many cases, they state that fees were not clear at the beginning of our work from them, which is completely untrue and we can prove it:

1. We sent the full chart of our Bar Association with due explanations for them to understand the feeing system

2. We asked them to make all necessary related questions and we answered them all

I am inclined to think that thay just do not understand the nature of legal services and the regardless you win or lose, you need to pay the defence and the assistance you have been provided along the years.

I could also state that none of the vast majority of clients of last years have lost their case.... even when there are some that received Court decissions against them. Why am I saying this? Because in most of the cases, what clients primarily wanted o avoid-- completion--- was avoided. If we-- or any other lawyer-- had not assisted them then, they would probably now paying expensive mortgages on properties which are now highly deprecciated.

And finally, despite we charged nothing for continued communication-- by email and phone--- we charged nothing-- as a courtesy, to these cleints. Our Bar Association establishes a price for these comms.

In Spain we say: NI AGRADECIDO, NI PAGADO :)

No thanks, no payment?

Hi Maria,

I have sent you a PM - it may help.