What's reasonable on payment?

[Kerry F]

I'd like to know everyone's thoughts on payment from firms.

Most firms I work with guarantee payment on original and copies in a maximum of 60 days.   But just a few won't guarantee payment on copies until they get paid and when it's going on 90 and 120 days out,I think that's too long to have to wait, but just wondered what others thought.  I don't know if they are not aggressive enough on collections or what.  But don't insurance companies pay court reporter bills within 90 days at least usually?

[Mary Ann Payonk]

Hi, Kerry.  I don't know the usual time it takes to pay court reporters' bills, but it really doesn't matter.  You're working for the reporting agency, not the end client.  I know, I know ... many reporting agencies aren't going to get off of that money before they're paid by the client.  But many ARE.  Many reporting agencies actually do pay everything in 2 weeks to 30 days.  Here's what I think, and that's that agencies have the upper hand in many areas of the country simply because there's an overabundance of reporters in many areas.  When there are a ton of reporters available, and agencies know that if you (or someone) passes a job by, there are a dozen other reporters who will gladly take the work, they can dictate their terms at whatever they think they can get away with.  And that includes dropping the rates that they pay reporters as well as when they get paid.  As far as aggressive collections, again, some agencies are; some are not.  Many reporting agencies ... and I know this is true because I had to sue one for collections ... are afraid to "rock the boat" with a client by asking to be paid for their services.  Isn't that ridiculous?  I would say that you should try to push for what you can get, but because they have the upper hand in the matter, we are often at the mercy of agencies who just don't care about fairness to the reporter who is doing all the work for them.

M.A.

[Rosalie DeLeonardis]

The firms I work for now pay on everything within 45 days of turning in the transcript.  I do not and cannot work for agencies that pay on copies when they get paid.  Been there, done that.  Sometimes it took nine months to get paid on copies. 

[Kelli Combs (admin)]

If you ask me, I think the agencies have been paid and they are floating the money to pay 0 & 1s on other jobs.  I have no proof of this but it is my assumption. 

[Kerry F]

Thanks all.  I do get paid in guaranteed time on the 0&1s.  It's the copies I'm asking about.  Just wondering what you all think is a reasonable time to wait on copy payment if they don't guarantee payment.  I really haven't had trouble working for contract or reduced rates because it's just doesn't come up, luckily, with the firms I work with.

[Kelli Combs (admin)]

I think 60 days is long enough.  I'd be curious what the average time it takes an attorney firm to pay their bills.  Sometimes they wait till the case goes to trial and pay afterwards.  I think that's way, way too long and puts the reporting agency in major debt having to wait that long.

I know of one firm that was owed $800,000 from a very reputable law firm on a case that had been going on for over a year.  I don't know how an agency can float that much money for a long period of time.  I feel very bad for them.

[Kerry F]

I think 60 days is long enough, too.  I was just curious how long it is taking insurance companies to pay for reporting services if law firms are waiting for the insurance company to pay them first before they pay the reporter.  It is the attorneys that are responsible for our bills, though, not the attorney.

Jeez, 800,000 in transcript bills????

[Kelli Combs (admin)]

Yes.  This attorney firm would use multiple reporting agencies and owe them all tons of $$$.  I hope the agencies finally got paid.

[Judy]

Some insurance agencies take up to six months to pay bills. 

 

[Amanda Leigh]

In my experience, insurance companies have been very quick to pay (I do no contracting).  Sometimes I get an insurance check in a couple of weeks.  The longest to pay have been plaintiff counsel; but for the most part, they pay within 60 to 90 days.  Sometimes I do have those that are several months old and there are always those that will hold on to the money until you hound them.

[Judy]

That's odd that you say that about plaintiff firms.  My plaintiff clients pay by return mail generally (thank goodness!).

[Amanda Leigh]

I have several great plaintiff clients that pay super-speedy, but then there are some that do lag behind.  The defense, on the whole, pay more quickly, in my experience--but everyone pays pretty quickly (much more quickly, on average, than when I've worked for other agencies that pay when they get paid--guess I just get the good ones).  But there are some bad apples.  I used to have a client that would not pay quickly--we're talking months and months.  One of the times I called Accounts Payable (very large firm, downtown Dallas--multimillion--business lit), I was told it had been slated to be paid on the 31st of December (if memory serves, I got job out in March).  She shared with me that that is what they did with a lot of vendors.  I asked her if I could walk over there and get it that day (my office was two blocks away), and she agreed.  After that, I told them they would need to pay my invoices no later than 30 days from date of invoice.  I worked a while longer for this attorney and he started calling someone else, I guess.  I did not inquire.

[Quyen]

Kerry, I'm glad you brought this up. It has been weighing in the back of my mind, and I have been debating discussing it.

First of all, I never work for firms that don't guarantee payment on the original and all copies up-front if I get the copy orders on the record or by order form. A firm I had worked for years ago asked me to cover a job for them earlier this year. Years ago, we had agreed that they would pay me up-front for original and all copies.  Although I had a bit of difficulty getting paid timely by them back then (they were a brand-new firm), they ultimately paid me in full.  Fast forward to early this year, they said they no longer pay up-front on the copies but that they were very aggressive about collecting and assured me that it would be around two months tops.  Based on our past working history, I trusted them and agreed to take the job.  After some frustrating e-mails back and forth over payment, it is now nine months, and I finally just received payment on the one last copy. Although it was a good job (O & 5).  However, spread over nine months, it's peanuts.

I know that they sent out all copies at once.  If the CR firm sent out the transcripts COD, then I would understand -- our work product is not floating out there for free.  BUT . . . if they choose to send out copies before getting paid, then the collections burden falls upon the CR firm, and they should pay us because the transcripts have already gone out. Our contract/agreement is with the CR firm, not the attorneys/law firms.  Collections is not our responsibility, so we should not have to wait for the firm to get paid before we get paid.

I will NEVER agree to take another job without guaranteed payment on all copies up-front.

Oh, and most insurance companies do pay very quickly; I know that for a fact.