Working With Contingency Matters

Transcription

1 Working With Contingency Matters Contents About Working with Contingency Matters Adding Contingency Matter Bill Settings Layouts Adding Contingency Matters Posting Time Creating Lists for Contingency Matters Creating Invoices for On-Going Contingencies Using the Contingency Calculator Creating Final Bills Creating Settlement Statements About Working with Contingency Matters Matters are set as contingency cases when the law firm does not bill time at a set rate, but instead, charges the client a lump sum fee upon completion of the case. There are multiple ways to set up contingency matters in PCLaw. This document outlines all areas for working with contingency matters in PCLaw. Adding Contingency Matter Bill Setting Layouts Options > Lists > Matter Bill Settings > Add A contingency matter can be set up in several different styles within the features that PCLaw offers. If your firm works with contingency cases on a frequent basis, creating a matter bill setting for this type of matter can both provide consistency with contingency settings and save preparation time. Exhibit 1. The Add Matter Bill Settings window displayed when clicking the Add button in Matter Bill Settings 1. Type Contingency in the Nickname box. 2. Type an expanded description in the Description box.

2 3. Select a billing frequency from the Frequency drop down list that most closely meets your needs. Cycle 1: Designating one billing frequency for all contingency cases allows you to create mass billing restricted to contingency cases. Exclude prevents the matter from being included in any mass billing. The matter can be billed individually at any time. Include allows the matter to be mass billed. To bill only costs, select Bill Only Disbursements When Mass Billing. 4. Select Contingency from the Quoted Type drop down list. Note: Assigning a matter as contingency allows the matter to be: marked as contingency when printing labels. The Billing Quoted Type token must be present on the label template. marked as contingency when exporting matter information. Quoted Type must be included with the export information. excluded from the WIP and WIP Summary by Responsible Lawyer reports. Deselect Include Contingency Matters under the Other tab. 5. Check Bill only Disbursements When Mass Billing. Note: When the Bill Only Costs option is selected, the firm can include the matter in a regular billing cycle, with only client expenses appearing on the invoice. General retainers are included as costs. Time entries remain as unbilled. 6. Click OK to return to the Matter Bill Settings window. 7. Click OK to return to the PCLaw desktop. Adding Contingency Matters Toolbar: When using a matter bill setting layout, opening a new matter for contingency cases involves only two customized steps. For pre-existing matters, these steps can be performed on the like named tabs in Matter Manager. 1. On the New Matter > Main tab, type 0 in the Default Rate box. A zero default rate allows you to record time on the contingency case, and even bill time to show clients the hours allocated to the matter. The billed time is not given a value and would only appears on the invoice for information purposes. 2. Complete the remainder of the Main tab as required. 3. Click the Billing tab. File > Matter > New Matter New Matter icon 4. Select Contingency from the Bill Settings drop down menu to fill all bill settings according to the matter bill settings layout. 5. Check Allow Bill Settings Overrides to individualize any settings. 6. Make any required overrides. 7. Click Save and Close to create the matter. Working with Closed Matters Page 2

3 Posting Time Although the only revenue a firm realizes from a contingency matter is the fee paid at the completion of the case, many firms still want to track time. There are two methods for recording time for a contingency: Hours and explanation only with no dollar amount Hours and explanation with a dollar amount. To record time with hours and explanation but no dollar amount, use the Time Sheet. Type or accept a zero rate. All time entries are eligible to be billed and can appear on an invoice. To record time with hours and explanation and include a dollar amount, use the Time Sheet. Add the respective rates. All time entries are eligible to be billed and can appear on an invoice. When the final invoice is created, enter the lump sum payment in the Fees box of the Billing Information window. For time entries with a dollar amount, PCLaw enters either a write up/ down for the difference between the accumulative time entries and the lump sum payment. Time entries are often withheld until the final bill. It is the firm s option when or if they appear on the bill. Creating Lists of Contingency Matters File > Matter > Export Firms with many contingency matters need a way to keep track of them. PCLaw provides a method to export a list of contingency matters to a word processor or spread sheet. The exported file is not itself a word processor file. It is a file that can be merged into the various fields in your word processor document to produce form letters, mailing labels, etc. See your WordPerfect or Word documentation for more information on using merge files. For database programs, the exported file is a comma-separated variable (CSV) file read by many database applications. Check your database documentation to see if your database supports CSV files. Exhibit 2. The Exports Matter window 1. Select a layout from the Layout Name drop down list. 2. Select the file format from the File Format drop down list. 3. Type the directory path in the Path box where to save the exported file or select the desired path by using the Browse button. 4. Type a Name for the exported file. 5. Click Export to advance to the Export Matters Select Matters window: 6. Select Cycle 1 or the appropriate billing cycle used when setting up the matter. Working with Closed Matters Page 3

4 Creating Invoices for On-Going Contingencies By using a unique billing frequency, it is possible to mass bill contingencies only. A contingency case may be invoiced before its completion to collect expenses. If the option When Mass Billing, Bill Only Costs is selected on the Billing tab of Matter Manager, fees or recorded time are not billed. 1. On the Options tab, select Cycle 1 from the Select Frequency box or the designated cycle from Adding Contingency Matter Bill Setting Layouts on page Complete the remainder of the Bill Selections window as required. 3. Click OK to create the invoice. Using the Contingency Calculator The Contingency Calculator is found in two locations in PCLaw: on the Billing pull-down menu on the Billing Information window when processing a bill. The calculator on the Billing Information window is able to adjust fees on an invoice. As a result, it contains greater functionality than the calculator on the Billing pull-down menu. The Contingency Calculator on the Billing Pull-down Menu Billing > Bill > Options tab Billing > Contingency Calculator The calculator on the Billing pull-down menu is used exclusively as an aid for calculating the fees due to the firm and allocations to the participating lawyers. It does not post the results anywhere within PCLaw. Exhibit 3. The Contingency Calculator on the BIlling pull-down menu 1. Select the matter nickname in the Matter box. PCLaw fills the Less AR and Unbilled Costs box. 2. Type the overall settlement amount in the Settlement box. 3. Type the firm s percentage of the settlement in the Contingency Percent box. The Contingency Fee and Net to Plaintiffs values are calculated automatically. 4. Select the lawyer s nickname in the Lawyer column to whom fees are to be allocated. By default, all fees are allocated to the lawyer on the first line. 5. For all lawyers on the second line and below, complete one of the following columns: In the Allocated column, type the value of fees to be allocated to the lawyer. The lawyer s percentage is calculated automatically for that lawyer and the lawyer on the first line. In the Percent column, type the percentage of the fees to be allocated to the lawyer. The allocated fee value is calculated automatically for that lawyer and the lawyer on the first line. 6. Click Close to close the calculator. The values from the calculator are not posted to the Client Ledger or lawyers fee accounts. Working with Closed Matters Page 4

5 The Contingency Calculator on the Billing Information Window Billing Information: Cntngncy button The tool on the Billing Information window, when processing a bill, not only calculates fees due to the firm and lawyer allocations, but also adjusts the invoice for the fee amount. Exhibit 4. The Contingency Calculator produced when clicking the Cntngcy button on the Billing Information window The Less AR and Unbilled Costs box fills automatically. 1. Type the overall settlement amount in the Settlement box. 2. Type the firm s percentage of the settlement in the Contingency Percent box. The Contingency Fee and Net to Plaintiffs values are calculated automatically. The Original Fees box displays all unbilled fees prior to the creation of the current invoice. The Fee Adjustment box displays fee adjustments incurred through the contingency calculator. Fee adjustments made in other areas of the Billing Information window are also displayed in this box, however the contingency fee overwrites any other fee adjustment. The Fees to Bill box displays all fees to be billed on this invoice. 3. Select the lawyer s nickname in the Lawyer column to whom fees are to be allocated. By default, all fees are allocated to the lawyer on the first line. 4. For all lawyers on the second line and below: In the Allocated column, type the value of fees to be allocated to the lawyer. The lawyer s percentage is calculated automatically for that lawyer and the lawyer on the first line. or In the Percent column, type the percentage of the fees to be allocated to the lawyer. The allocated fee value is calculated automatically for that lawyer and the lawyer on the first line. 5. Select an explanation code or type a full explanation for the calculated contingency fee in the Explanation for fee adjustment box. 6. Check Show this explanation on the invoice to display this explanation on the invoice. 7. Click OK to create the fee adjustment for this invoice. The contingency fee appears in the Fees box of the Billing Information window. Working with Closed Matters Page 5

6 Creating Final Bills Quick Step: Billing > Bill > Main tab Billing > Create Bill > Main tab When a contingency is completed, a final invoice including time entries for work performed on the matter, the law firm s contingency fee, and any outstanding client costs, is created. A contingency matter is billed individually and not as part of a mass billing. Exhibit 5. The Main tab of the Bill Selections window 1. Type the matter nickname in the Matter box. 2. Leave the Client and Lawyer boxes blank. 3. Accept the default Start Date of 1/1/ Accept the default End Date of 12/31/2199 or use today s date. 5. Complete in the remaining fields as required. 6. Click OK to advance to the Billing Information window: Unbilled time, if any, appears in the Fees box. Since the contingency matter is being billed individually, the option When Mass Billing, Only Bill Costs is not applicable. 7. Click the Cntngncy button to open the Contingency button for calculating the fee adjustment. See The Contingency Calculator on the Billing Information Window on page If the law firm is holding the amount of the settlement in trust: Type the contingency fee amount in the Transfer from Trust box. 9. Click OK to advance to the Trust Transfer Information window if transferring funds from trust. 10. Adjust the trust transfer boxes if needed. 11. Click OK to create the invoice. Working with Closed Matters Page 6

7 Creating Settlement Statements Billing > Settlement Statement At times it is necessary to create a statement of all fees and disbursements for a matter as when requesting reimbursements of costs. The Settlement Statement feature reads the entire client ledger and creates a statement showing all fees and disbursements, whether billed or unbilled. Settlement statements do not increase accounts receivable or mark items on a client ledger as billed. Settlement statements are intended to be produced from the start of the client ledger to the end. If you change either the Bill From or Bill To dates, the statement may not include all charges. Furthermore, statements are created on their own special template, Settle. Regular billing templates should not be used. Exhibit 6. The Settlement Statement Selections window 1. Select the matter nickname in the Matter box. 2. Leave the Client and Lawyer boxes blank. 3. Accept the default Start Date of 1/1/ Accept the default End Date of 12/31/2199 or use today s date. 5. Accept the default Template as Settle. 6. Fill in the remaining fields as required. 7. Click OK to produce the settlement statement. Working with Closed Matters Page 7