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Cost Recovery

Cost recovery brings up many substantial ethical concerns. The ABA Model Rules of Professional Conduct are excellent resources for those seeking a happy medium between cost recovery and over billing. These rules can be found at the web site for the ABA’s Center for Professional Responsibility. Model Rule 1.5 discusses fees. It is suggested that you and your client predetermine how costs will be recouped. Instead of billing your client for each and every fax and photocopy, you may want to negotiate a set fee for each month. According to Rule 1.5, fees must be reasonable and can include in-house services including copying and telephone use. Overhead expenses such as rent, utilities, and office supplies cannot be recovered. A lawyer should never charge his or her hourly rate when performing clerical tasks. Reasonable computer-assisted research fees should be passed on to clients more information here

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