Win-Win Client Financial Policy of GMF PLC

Like all other treasured relationships, it is important to have an attorney-client relationship that is a long-term, win-win relationship. To have such relationships with our clients is the goal of Goodson Manley Forakis PLC. The following statement of our billing policies is intended to ensure that win-win attorney-client paradigm.

1. We want our clients to receive more in monetary benefits than they will ever pay in attorneys’ fees. In most cases, the tax savings and other monetary savings from the legal work we do for our clients provides increased cash benefits ranging from 10 to over 100 times the legal fees paid. Our legal work helps our clients to make more money and to spend less money in preventable legal expenses. We do not want to embark on any legal work for our clients unless they receive at least a 1,000% return on their legal investment.
2. We give special credits to all of our clients. We strive to stimulate our clients to be efficient, proactive, and financially responsible. We therefore offer the following credits:
   1. A prompt payment discount of 2% for proactive payment of monthly billing statements. We want to spend as little time as necessary dealing with the monetary matters of our attorney-client relationship and more time focusing on client services. Therefore, if we receive a payment on the monthly billing within 10 days of receipt, we will allow our clients to take a 2% discount. No reason exists why attorneys cannot provide the same cash flow incentives that are used in trade and industry.
   2. An “IRS Credit”. Whenever possible, our attorneys will structure the fees and billings so that they qualify for income and estate tax deductions. For most wealthy clients, the tax deductions will be 60-75% of the net fees after credits.
   3. “Family Member Credit”. When clients refer us to other branches of their family, we offer a 20% credit on the new work for the new family branch. We offer this credit because it takes less time to accomplish the new work since we already have information on the family and its core values and do not have marketing expenses.
3. What do the attorneys mean when the quote “fixed fees?” Many times, when our attorneys are given very complete information on the client's situation, we will quote all or a portion of the fees as “fixed fees.” We have standard fees for legal documents and structures that we have done many times before and are able to predict the amount of time and effort it takes to complete such documents and structures. When we quote a “fixed fee,” the fixed fee will not vary unless the client subsequently asks for additional legal services or our attorneys subsequently discover new facts that require additional legal services. If these changes occur, we will contact the client, inform the client of the adjustment, and confirm the adjustment in writing.
4. What do the attorneys mean when they quote hourly and standard fees? Sometimes, our attorneys will provide an estimate of the legal work based on an “hourly and standard” fees basis. Our attorneys do so when they are not given enough facts by the client to quantify a “fixed fee.” In such instances, we usually give the client an “estimate” of the hourly and standard fees. As we process and complete the legal work, we regularly send out to our clients a billing statement that details (1) a listing of which attorney performed the work, (2) an explanation of what they did, (3) the date when the work was performed, (4) the amount of time spent on the legal work, and (5) the fee charged for the completed work. If the specific work was a standard fee item, the standard fee for the work will be detailed. Meetings, letters, complex contracts, research, multiple transfer documents, or gifts where the circumstances are not clear are examples of legal work for which “hourly and standard” fee arrangements will be quoted.
   
   Each attorney or legal assistant of our firm has a different billing rate that is based on their years of experience, skill level, and expertise. Normally, our more skilled and experienced attorneys are able to complete a project in less time than their less experienced counterparts and have a greater repertoire of experience from which to draw relative ideas. Our billing rates vary from $60-$300 an hour. The hourly rates at which we bill depend on whether the work is performed by a legal staff member, a law clerk, legal assistant, junior attorney, experienced attorney, or by the senior attorney.
   
   Sometimes, our attorneys may quote a fee quote that is mixed — some fixed fees and some “hourly and standard” fees.
5. We provide our clients with a coordination letter that describes the legal services requested by the client and the fess quoted. We strive to ensure that all legal work quoted in a meeting or telephone call is written up into a coordination letter from the attorney to the client. Sometimes, we request the client to initial and confirm the coordination letter and fee quote like approving a contract with a contractor.
6. We have special fee payment arrangements for new client work. For initial fixed or estimated fees on new projects, we offer our win-win financial arrangement.
   1. Pay all fees with two checks. One check for half of the total fee is paid as an initial non-refundable retainer. The remaining balance is paid at the time scheduled for the ceremony for the completed project. We believe this fee arrangement solidifies the attorney/client relationship. Both parties demonstrate good-faith trust in the other and they each have a vested interest in completing the project in a timely manner.
   2. Value adjusted billing. To ensure our fees are fair and reasonable, we offer our clients the opportunity to adjust the legal fees based on the value of services rendered. If a client finds the fees for our legal services too high, the client may reduced the fee accordingly and pay only the adjusted balance. In addition, if a client perceives the value of services to be greater than the initial quoted fee, the client may increase the fee to meet the added value. We believe the value adjusted billing is inherently fair and allows us to further satisfy our valued clients. The increased legal fees are distributed among the staff as a performance bonus.
   3. Pay all fees under a monthly payment arrangement. For those clients unable to meet the initial retainer payment plan, we offer a monthly payment option. The amount and number of monthly payments will be negotiated on a case by case basis with the firm’s office manager. The terms of the payment plan are designed to meet the individual client needs and protect the firm’s business interests. A secured promissory note is executed by the client to complete the financing arrangement. We do not want clients to be deprived of quality legal services when they are currently unable to cover the up-front legal investment. In all payment arrangements, neither the client nor the attorney will have to think about or deal with the finances and will be able to focus on working together to complete the legal tasks. Moreover, the firm’s bookkeeper will be able to deposit the postdated checks without disturbing the attorney or the client.
7. We provide an attorney billing statement that serves as a status report for the client. We send out billing statements at least once every month. Sometimes, when the billings are overdue or if we are working on a complex, high-billing project, we send out billing statements every 2 weeks.
8. When are the bills payable? The attorney billing statements are due for payment within 10 days of receipt. If the billing is paid within 10 days, the client may take a 2% prompt payment discount.
   1. What happens if the billing is not paid within 30 days of receipt? If the billing is not paid within 30 days of receipt, the attorney may defer working on the client’s legal matters and shift to working on clients who have paid in advance or have honored their fee arrangements.
   2. What happens if the bill is not paid by the end of the month? If the billing is not paid by month end, the client will be charged a finance charge in the amount of 1½% per month until paid. The finance charge will be added to the bill, and the client’s legal work will continue to be deferred in favor of clients who have paid in advance or kept their billings current.
   3. What happens if the billing becomes 60 days overdue? If the billing becomes overdue by more than 60 days, the finance charge will continue to accrue. In addition, all attorneys will cease all work for the client until the billing is brought current and a retainer is paid for future work. The retainer paid must be replenished before future legal work is performed and when it is close to being used up.
   4. What happens if the billing becomes 90 days overdue? If the billing becomes overdue by more than 90 days, the finance charge will continue to accrue. In addition, no work will be performed for the client. The attorney then will turn over the billings for lawsuit or collection unless the client gives a promissory note secured by adequate security bearing 12% interest, provided other satisfactory arrangements cannot be made.

We believe it is unfair to our loyal, financially-responsible clients to increase their fees to account for bad debts or to delay their work as a result of time spent collecting fees from delinquent clients.

9. What if we have a problem with (1) the legal work done, (2) the billing amounts, or (3) our own financial situation? Our firm has adopted the Integrity Agreement in dealing with our clients. We ask our clients to honor their obligations under the Integrity Agreement.
   1. If a client has a problem with the legal work, the client should telephone or write us right away and let us know what they want us to do to remedy the situation.
   2. If a client has a problem with the billing, the client should telephone us or send us the billing back right away and let us know what they want us to do to remedy the billing problem. At all times, we want our clients to pay those portions of the billing on which they have no problems.
   3. If a client has a difficult financial problem that prevents the prompt payment of the billing, let us know right away. We will work with the client to obtain financing with a bank or to arrange a secured promissory note payment plan within the client’s financial means at that time.
   4. If we do not hear from a client of any objections to a monthly billing by month end, the client and the firm will agree that the billing is acceptable.
10. What Further Benefits Will the Client Receive?
    1. Extra benefits. We provide our clients all those extra benefits set forth in the Complimentary Services Rendered to Clients declaration of Goodson and Manley, PLC.
    2. Warranty. We offer a warranty on all documents that we prepare as set forth in the Quality Warranty on Legal Documents of Goodson and Manley, PLC.
    3. Interest on overpaid fees. If a client pays a retainer or a fee in advance and the legal work is not performed to offset the advance within the billing month, the client will be credited with interest at the rate of 1% per month on the unused retainer.
    4. Discounts if work is delayed over a month. If the client’s legal work is not performed within the date it was promised, the client will receive a 2% credit for each month that the work is overdue.
11. Who is responsible for the billing of a corporation, limited liability company, partnership and other business entities? The principal owners or officers of a corporation, limited liability company, partnership, or other business entity who engage our services are responsible for the billings of the business entity if the business entity does not pay. Those individuals who engage our services in essence guarantee our fees if the business does not pay. This arrangement is important because the attorneys do not want to be in a position where they must worry about whether the business entity is solvent when the business entity’s solvency is the responsibility of the owners and officers who engage the attorneys.
12. How are discomforts and disagreements processed? In even the best relationships, disagreements may arise. Each of us – the client and the attorney – agrees to process our discomforts or disagreements under the procedures of the Integrity Agreement adopted by the College of Preventive Law.
13. We continually remain open to suggestions for improvement. Periodically, we send out a report card to our clients to solicit suggestions for improving our services and billing systems. We always promise our clients that we will give up our best ideas for better ones. We want to give our clients the services they desire.
14. Incentives for clients not to procrastinate. It is in the best interest of both the client and the attorney to get the legal work started and to get it completed. After meeting together, we will list specific action items for the client, attorney, and other members of the financial planning team. If we all decide to do something, let's get it done. We will usually make one courtesy complimentary call to follow up on specific action items needed from the client and other members of the financial planning team. After one follow-up call without performance, it will be necessary for us to bill our time on an hourly basis to make these additional follow-up telephone calls or to send follow-up memorandums. The client’s billing statement will reflect these billings as an incentive to help us finish the client’s work.

For additional information, please call (602) 252-5110.

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