4 Things to Tell Your Clients in Advance about the Suit Process

It is often necessary to progress to litigation in order to effect collection of a past due balance. Clients who have had previous experience with this course of action will usually understand the challenges and possibilities that come with litigation. But when dealing with a client who is new to the process, it may be difficult to balance the necessity to provide them with realistic preparation for what may come, without scaring them away from filing suit.

1. The Risk of a Countersuit

Should a client be informed that the debtor might countersue, whether they have a legitimate reason to or not? A client who is trying to recoup money owed to them may not think it’s possible for the debtor to suddenly gain leverage through a lawsuit of their own. Although countersuits are relatively rare, they are always a real possibility. Rather than having to tell your client about this unpleasant surprise when it happens, and the costs associated with it - especially on large value claims, it just makes sense to bring up the possibility of a countersuit at the outset.

2. The Potential Costs

It’s generally considered best to prepare the client for the total costs that may be associated with litigation, although that may not be an easy task. Forecasting the total estimated costs at the onset of a suit may be difficult, but being as reasonably transparent as possible helps your client make an informed decision, and prevents them from getting “sticker shock” halfway through the proceedings.  

3. Talk About Time

Although many domestic (U.S.) lawsuits can be resolved within a year, larger accounts can take a few years, and international lawsuits can have a timeline that stretches out to five years or more. Making the client aware of the general time frame involved will prepare them for the general parameters of what to expect and how often status updates should be anticipated.

4. Success Isn’t Guaranteed

Clients should also be clear on the fact that obtaining a judgment through a lawsuit does not always equal receiving payment of the debt. They should be made aware that executing on a judgment may be more difficult than anticipated, or even fruitless, due to a variety of factors such as empty bank accounts, or secured creditors blocking or taking priority over their claim. Explaining to a client in advance that this might be the outcome can go a long way towards earning their trust.

Telling clients too much up front may at times feel like convincing them not to file suit. But providing a sufficient level of transparency about the litigation process, along with maintaining open lines of communication, will help to assure any client and keep them returning to you for your services when they need it.

-Tom Hamilton, American Lawyers Quarterly