Small Law Firms, Solo Practitioners

Back In The Race: Firing A Client

Breaking up with a client is hard to do; here is how columnist Shannon Achimalbe recently did it.

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A few weeks into my new contract job, things got extremely busy. A few of the partners assigned additional work to me, and I see 12-hour days coming in the near future. And when I am done there, I have to go back home to work on my own client files. Unread letters and email are piling up on my desk, and it is getting harder to respond to phone calls quickly. I needed to do something to reduce the workload. And I sure as heck am not going to tell the partners that I’m too busy with my own work.

Over the weekend, as I was reviewing my notes and preparing billing statements to my clients, I decided that some of them had to go. Some were not paying their bills as agreed on the attorney-client contract and giving me all kinds of excuses. Others were slow in giving me information and documents that I needed. And others had malignant personalities that I couldn’t stand. Like most unestablished solo practitioners and small firms, I previously had no choice but to be flexible and exercise temperance in these situations. But now I am in a position to fire them.

After the jump, I will tell a story about a client I recently fired, the reasons why, and how I ended the relationship. I was worried because of the things he could possibly do to me: a bar complaint, a malpractice lawsuit, or a negative online review. But I felt particularly bad about this because he was one of my very first clients and one of my strongest cheerleaders….

Peter is a salesman in his late sixties. During his prime, he was one of the best in the business. He would reminisce about the old days when he was making a mid-six-figure income selling ice to Eskimos. But in 2008, his business crumbled. His suppliers filed for bankruptcy and shut down. He lost most of his customer base to overseas online businesses. But he didn’t give up and looked for the next gold mine. He tried selling other products and looked into other business ventures. But nothing really panned out.

I met Peter while I was an employee at my old firm. We hit it off personally and I enjoyed working with him. When I left the firm and started my own practice, he found me through Google. Unfortunately, his health and finances took a turn for the worse, and he needed my help on various matters. He didn’t have much money but he promised to pay me a small amount every month. At the time, I really needed the money and he was a pleasant guy to work with. So I agreed.

For the first few months, things went along smoothly. Peter made his payments on time and I got work done for him. Peter even took my business cards and offered to advertise my business for free on his newsletter and trade events. And of course I appreciated the publicity.

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But a few months later, problems began to develop. He was late on a few payments and there were times when he didn’t pay me at all. When I called him on it, Peter gave all kinds of excuses. His car needed to be fixed. Or his commission check didn’t come in on time. He was also slow in giving me the documents I requested and at times was angry when I pushed him to send them to me. He would placate me by saying that once his big check came in, he would pay back the difference and give me a little extra for my patience. So I bought it. I had few clients at the time so I couldn’t afford to take a stand.

Over the years, I continued to work for Peter, although recently on a greatly reduced level. He never got that proverbial big check. He paid me from time to time, but I got the impression that Peter paid me whenever he felt like it.

Now fast forward to last week. Peter needed my help on a major project. I was busy at the new firm and I didn’t have time to deal with his nonsense anymore. I told him that he was several months overdue on payments and I won’t get started until he pays off the balance and sends me a small retainer. He gave me all kinds of sob stories and excuses I can’t even remember. He also said that he is in talks with a startup offering salesmen high commissions and he will give me a huge cut of his first check. When I asked him what the product was, he couldn’t really elaborate, which made me think he was selling a DVD rewinder.

I’ve had enough.

Soon after I hung up, I wrote a long letter to Peter telling him that I am terminating my representation. I learned from others and books that client termination letters should generally be short and to the point. And in other cases, I have followed this advice. But this was different. I wrote about the late and missed payments, his tardiness, and his false promises. I gave him a chance to reinstate our relationship if he agrees to pay the balance due along with a retainer and promises to send me everything I need in a reasonable time. And this time, work does not begin until the payment is in my bank account.

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Peter wrote me back apologizing for the missed payments. He was getting old and doesn’t have the energy and the charisma that he once did. He admits that he is not sure if he will be successful with the startup. And he told me that he will be unable to pay me since he won’t have any income for the next few months. But he thanked me for everything I have done so far and hopes that I will reconsider my decision. I told him to call me back when he’s serious about resolving his legal issues.

A part of me felt bad for Peter. Maybe if I helped him out just this once, he could get back on his feet and pay me later. I also didn’t like to leave clients hanging at their time of need. But I’ve heard his stories and promises too many times. He’s lost my trust. And I have to think about my other clients who have paid me faithfully, including some who have sacrificed paying others and have even cut back on basic necessities to do so. It’s not fair to them. It’s also not fair to my new employer who expects me to give her firm my best work without the baggage.

I wonder if Peter will take retaliatory action. While he sounded like he wanted to leave amicably, disgruntled clients can be bitter and desperate, especially if they are in a financial rut. He can file a complaint with the state bar, but I don’t think he can dispute what I wrote on my termination letter. He can threaten to file a malpractice lawsuit against me, but I’m certain that he won’t find any takers. My massive student loan bill will probably scare off most plaintff’s attorneys anyway. Or he can write a negative review online, and because of attorney-client privilege, my ability to respond is limited. But it’s okay. A negative review will eventually come. I’m ready for it.

It’s too soon to tell. Maybe Peter will file a complaint. Or he might get his act together and mail me a check. But one thing’s for certain: he won’t be selling ice to this Eskimo anymore.

Shannon Achimalbe was a former solo practitioner for five years before deciding to sell out and get back on the corporate ladder. Shannon can be reached at sachimalbe@excite.com.

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