Hint: It Is Not Necessarily Their Hourly Rate
When it comes time for the Board of Directors to hire an attorney/law firm to represent the association, there are several important questions that need to be asked and answered properly. One of the first things we often hear someone on the Board of Directors ask when contemplating hiring an association attorney “what do they charge per hour”? Yes, this important, but by not asking the following questions, you are setting up your association for disappointment, frustration and even larger costs.
What is the attorney’s length and extent of experience in Community Association law? If they do not specialize in this area of law it will eventually be an area of contention, as you will have to pay more for their research, in that a community association law specialist can probably answer just from experience.
Get their references and check them out. Yes, maybe they won the big case against the developer or some insurance company that is impressive, but how did they handle the day to day legal work of their clients? Ninety-eight percent (98%) of what you need from your association will not be related to litigation.
How do they handle collections? Is this an important area of their practice? Do they front collection costs or do you, and how far along the collection process does this hold? What does their status report look like? Is this acceptable and when do you receive this? Also, if this attorney does not have flat fees for collections, this will quickly become a problem with your bookkeepers, as they will never be up to date on their delinquent owners’ ledger with this arrangement. They should be able to provide you a rate sheet to review.
Does the attorney offer any free services? Some attorneys will review your documents for free or allow free telephone conversations throughout the month. Check and ask, as association attorneys all offer different packages and services, with different costs.
Does the attorney have a litigation department or litigation specialist on staff? This will be important not only for any potential litigation involving the association, but these are the same people who may have to defend any contract or documents that they draw for you. Make sure they are or have access to great litigators.
Does the firm review and amend documents for clients? How many have they done so far and for what types of associations? What do they feel should be in your documents to help you manage your association in the areas of collections, rules enforcement and the general operation of the association? Due to the housing and mortgage crisis we are seeing some novel legal approaches to these issues, that as little as a year ago was unheard of to us. Is their firm creative and forward thinking?
What is their availability during normal business hours? After hours, can they be reached for an emergency or when you are in a Board Meeting and have to have a question answered? What is their charge to come to a Board Meeting or Members Meeting? Who will be the contact for your association or will they pass you off to a new associate? Will the partners be available to you if your main contact is unavailable?
Okay, now, the big question: What is their hourly rate? What is the rate for partners, associates and paralegals? What is their fractional billing time? How and when do they bill? What are their other costs that you will be charged for? Back to my original statement about hourly fees and costs not being a priority. If an association attorney is not a specialist or doesn’t have the staff in any of these areas stated above, you may pay for these deficiencies in terms of time and poor representation, which will cost the association money.
There are attorneys and law firms who specialize in Community Association Law and they will have the services, staff, departments and expertise to help you and the Board of Directors to successfully navigate through the ever changing legal maze. Investigate, interview and choose confidently with the focus of these questions.
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