Standard Engagement Terms
The following terms and conditions are replaced, effective January 1, 2025, with the Standard Terms you can find HERE.
Updated Aug. 1, 2022
These standard engagement terms apply to Phillips & Bathke, P.C.’s (the “Firm”) representation unless the Firm explicitly waives a term, in writing.
These terms contain an arbitration provision.
1. Scope of representation
The scope of the Firm’s representation is set out in the Engagement Agreement that you and the Firm signed. Unless the Firm otherwise agrees, in writing, it will not provide legal services in connection with matters outside the scope of representation and has no obligation to do so.
2. Fees & costs
Unless otherwise agreed, in writing, the Firm will bill you for its attorneys’ and staff’s time at their set hourly rates or at the flat-fees quoted in the Engagement Agreement. Time will be rounded up to the nearest one-tenth of an hour. However, uncontested hearings are billed at a minimum of thirty minutes for the hearing; contested hearings are billed at a minimum of one hour for the hearing; and the minimum charge for a given event will be billed at two tenths of an hour, i.e. twelve minutes. New matters are subject to a minimum billing of $500. Any flat-fees are considered earned at the moment the Firm begins efforts covered by the flat-fee.
Unless otherwise agreed in writing, the Firm’s current billing rates for its attorneys range from $250 to $350 per hour. The current billable rates for staff range from $65 to $150 per hour. If the Firm’s rates increase beyond this amount, you will be notified prior to the increase at least fifteen days before the new rates go into effect. The notification may come in the form of a phone call, notation on an invoice, or other written communication. Unless you elect to terminate the Firm’s representation after such notification, the new rates will take effect.
The Firm will bill you for out-of-pocket expenses. Typical out of pocket expenses include printing, mileage, postage, shipping, filing and governmental fees, pre-payment of retainers or invoice payments to local or co-counsel, e-discovery vendors, investigators, and other expenses incurred in providing you with legal services. Typically, the Firm will simply pay the expense and invoice you for the cost on your next invoice. However, the Firm in its sole discretion may require you to pre-pay the expenses before they are incurred. This typically occurs when an expense is substantial. Some standard expense rates are as follow:
Printing and copying at $0.25 per page for black and white and $0.75 per page for color copies (unless printed by a third-party vendor, in which case the vendor cost will be passed on to you).
Mileage for travel at the then-current rate of set by the Internal Revenue Service or $0.60 per mile, whichever is greater.
E-discovery vendors at $10 per gigabyte with the Firm charging a minimum of $10 per month for litigation matters using e-discovery vendors.
These rates are subject to change.
3. Retainers
In some cases, the Firm will require a retainer before accepting you as a client. If your Engagement Agreement states that a retainer is required, then, the Firm will not begin representing you until that amount is provided. The retainer amount will be placed in the Firm’s client trust account (not its operating account), which is called an IOLTA. When the Firm invoices you, the Firm will apply retainer funds to the invoice. Unless otherwise agreed, in writing, once the retainer reaches $1,000, you must add enough funds so that amount in trust is equal to the initial retainer amount. Once the Firm’s representation has concluded, the balance of your retainer funds will be returned to you.
At all times the Firm reserves the right to require a retainer for your representation. Reasons for requiring a retainer may include, but are not limited to, failure to timely pay invoices, upcoming large out-of-pocket expenditures, or impending significant increase in billable hour. If you refuse to pay a retainer when requested, the Firm reserves the right to terminate representation.
4. Use of other providers
The Firm may use other legal professionals, e.g., paralegals, clerks, investigators, local counsel, foreign trademark agents and practitioners, and so on, to assist in providing you legal services. By retaining the Firm, you consent to the use of these individuals or entities and agree to pay their fees as an expense as mentioned above.
5. Other fees
An administrative fee of $100.00 will be assessed for the opening of the first file for a new client.
An administrative fee of $50.00 will be assessed for the opening of a litigation file for any disputed matter, including, lawsuits, Trademark Trial and Appeal Board proceedings, other contested administrative proceedings, or preparation for the potential filing of one of the foregoing.
6. Company as a client
If an entity retaining the Firm is a company or other non-individual legal entity, then the company is Phillips & Bathke, P.C.’s client and its legal services will be provided to the company. That means the services will not be provided to any of the officers, directors or owners individually. It will take direction from the company’s representatives and will provide services on behalf of and with the best interests of the company in mind.
7. Invoices and failure to pay
The Firm will invoice you for its services. You will be provided a thirty-day grace period to pay the invoice. After that time, the invoice is past due.
Once an invoice is past due, you will be charged a finance fee of 9% per annum or the maximum amount allowed under the law. This finance fee does not mean you can simply not pay invoices and incur the fee. The Firm may take actions to collect on past due invoices. You agree to pay all costs associated with all efforts to collect on past due invoices. This includes both pre-suit costs and costs of litigation. These costs include, but are not limited to, attorneys’ fees (including time spent by the Firm’s attorneys in collecting the past due amount), expert fees, and fees imposed by debt collectors.
Any action instituted by the Firm to collect on past-due invoices is excepted from the arbitration provision, below, at the Firm’s election. You agree that any dispute concerning your failure to pay an invoice will be resolved in the courts located in Peoria County, Illinois. You recognize that the services being provided are being provided from a law office located in Peoria, Illinois and that these courts have jurisdiction over you. You consent to jurisdiction in those courts and waive any objection to jurisdiction or venue.
8. Termination
The Firm looks forward to an ongoing, mutually beneficial relationship. That said, you will have the right to terminate its services at any time upon written notice. The Firm may also terminate its representation of you for failure to pay fees and expenses when due, when continued representation could result in violation of the applicable Rules of Professional Conduct, or for other cause. In the event representation is terminated for any reason, you will be responsible for payment of fees and expenses incurred until the termination is effective. The Firm will have the right to retain your client files until all amounts due from you are paid. The Firm will continue to observe its duty to guard all client confidences following the termination of its representation.
9. Warranties
The Firm’s attorneys will use their best legal judgment and skill in their representation. However, the Firm makes no warranty as to any results.
10. Disputes
Any dispute concerning the Firm’s relationship with you, its efforts or services, or your failure to pay an invoice will be resolved in the courts located in Peoria County, Illinois. You recognize that the services being provided are being provided from a law office located in Peoria, Illinois and that these courts have jurisdiction over you. You consent to jurisdiction in those courts and waive any objection to jurisdiction or venue.
You agree that Illinois law will be used to interpret your contractual relationships and attorney-client relationship with Phillips & Bathke, P.C. and its attorneys, notwithstanding the application of any other choice of law or conflict of law rules or provisions that would result in the application of any other state’s laws. Illinois-law will apply regardless of your location in another state or country or the location in which you accept these terms.
You agree you are entering into a contract with Phillips & Bathke, P.C. which evidences a transaction involving commerce as that phrase is used in the Federal Arbitration Act. Any controversy or claim arising out of or relating to your relationship with Phillips & Bathke, P.C., other than an action by the Firm to collect on an invoice(s), will be settled by arbitration under the Commercial Arbitration Rules of the American Arbitration Association. Such arbitration will take place in Peoria County, Illinois. Any judgment on the award rendered by the Arbitrator(s) shall be binding, conclusive, and non-appealable.