Of course, every relationship between client and attorney is different, and the relationship with a forwarder/client and receiving attorney has its own unique benefits and challenges as well.  This is why we view our relationship with our receiving counsel as a partnership, not just a vendor relationship.  There are several key components for developing a successful partnership:

 

 

If files were not what you expected, you are struggling in a certain area, a file has an unfavorable result, the volume is too high, etc., the best thing the receiving attorney can do is advise the forwarder of the issue or need that they have.  If the problem has already been identified and an answer is on its way, you may be able to be part of the solution.  If the forwarder does not yet know of the particular issue, they need to know in order for your business and theirs to succeed.  The lines of communication should always stay open, even when the discussions are about difficult problems. Personally, I have found that a scheduled conference call or an in-person visit to the counsel have been the best ways to help to resolve any business issue.  That way, both parties are prepared and have time set aside.

 

 

It is important for everyone to understand what your philosophy is as compared with the forwarder’s philosophy.  A clash of the cultures could end in a disastrous result if not watched carefully.  Perhaps you don’t do any collections at all.  Maybe you pride yourself with having hard-core collectors.  Knowing your strengths and the strengths of your forwarders will help to plan how to work the business being sent.  For example, if your forwarder (or the client) attempts pre-suit collections and then sends the file to you, this does not mean the files are valueless.  It should mean it is a suit-ready portfolio of files.  If you and your forwarder are aware of how the other does business, you will know the best way to make the most money for both of you.

 

 

Another point to determine is the corporate structure of the forwarder.  Who is really in charge?  When is it appropriate to contact them directly?  Who decides who gets which files?  How are those decisions made?  On what criteria are you being measured?  How do you increase your market share?  Is there an attorney(s) you can talk to about your legal concerns?  How do you get attention to an urgent file immediately?  The last thing I want to hear is that there was a real problem and a real concern, but the receiving attorney didn’t want to get anyone fired, so they didn’t escalate the matter.  Other forwarders may feel differently, but you’ll learn the hard way if you don’t ask.

 

 

Distinguishing core competency from salesmanship is a challenge for everyone in business nowadays.  This is especially true when you may never meet the forwarder in person, which makes developing a productive relationship difficult.  First, make sure you are protecting yourself, the forwarder, and the client by having malpractice insurance, and employee theft bonding.  Many forwarders appreciate listing companies because of the protection they provide due to the bond provided and the support for statuses.

 

Be upfront about disclosing anything unusual about your practice as compared to other lawyers.  For example, if you don’t like jury trials or you won’t answer discovery at all, the forwarder needs to know this before they place files with you, not in the middle of a case with a jury trial set in two weeks.

 

Make sure to demonstrate your expertise and sell when you do well, or when unique circumstances arise in your state.  This helps the forwarder to understand who you are, give you the kinds of cases that you want, and helps the forwarder understand how to sell your skill-set to the client or potential client.  Especially with the economic downturn, there are more firms experimenting with new practice areas and reinventing themselves.  If this is true and you are turning to a forwarder for business in a new area, be honest about this so they can understand to take a different approach if they decide to do business with you.

 

 

Pay attention to all documents that are sent, including the materials sent to you that are internal notes.  Make sure that the fee is what you expected.  While some clients and forwarders are selective about sending their internal notes reflecting the work on the files prior to forwarding counsel’s receipt of the files, be sure to review them. We know of one situation where the forwarder provides a text file of their internal notes, but the receiving attorney disregarded the document causing unnecessary work on all parts. We consider forwarding counsel to be the expert in the laws in their state.  As such, we anticipate being advised about any state nuances on the file as early in the file as possible.

 

 

Offer ideas or technological assistance if possible.  If your firm tried a new procedure and it’s working for you, don’t be afraid to share those ideas.  There are many synergistic opportunities between a forwarder and a forwarding counsel.  Perhaps recommendations for additional business they do not directly control can occur.  Maybe an additional type of business can be explored.  A strong relationship between forwarder and receiving attorney can lead to endless possibilities, hopefully all of which are mutually beneficial.

 

 

If all else fails and the relationship must end after everyone has tried everything, have a phone conversation with those in authority.  The last thing to do is to resign in a letter not listing any reasons, or listing reasons to quit without ever raising those issues to the forwarder. Never burn bridges by resigning impersonally, and most of all, by returning files that you’ve already sued.  For ethical reasons, you should honor the agreement under which you took the files in the first place.  Tell the forwarder the terms under which you are willing to do business, so if a change occurs, they can call you to get you back on board.  Sometimes, recommendations for other firms that may be able to assist can ease the blow to the forwarder, or at least keep the files you have.

 

 

Unfortunately, the number of times I have been told that someone was in town or nearby, but they didn’t tell me until afterwards is staggering.  It had been expressed to me that my time might not be worth it to meet with them, but I highly disagree.  Placing a face with the voice on the phone, and having a personal meeting with a counsel to talk about how things are going, even if all is perfectly normal, is often integral to business progressing as best it can when things go wrong.  Even with a counsel that may have a smaller book of business, the potential for a new client in that area is always there.  It’s all about relationship building, which is so difficult without face-to-face meetings.  Plus, the relationship in its current state may change overnight with a new client that decides to go national.

 

These points are not listed in particular order of priority. They are all crucial to creating a long term partnership.

 

 

 

Ms. Rathbone is the Practice Partner and Forwarding Network Manager for the Insurance Subrogation Department of Javitch, Block & Rathbone, LLP.  Javitch, Block & Rathbone, L.L.P. is a full service creditors’ rights law firm. Our areas of practice include consumer and commercial collections, bankruptcy, landlord/tenant, insurance subrogation, litigation, and other creditor matters such as replevins, foreclosures, receiverships, and liquidations. We handle Ohio, Indiana and Kentucky for all areas of practice and forward work in the areas of insurance subrogation and commercial collections.  We are committed to developing long-term relationships with clients and regularly provide services such as educational seminars and timely notification of changes in the laws relative to their interests. Contact www.jbandr.com.