Dealing with the Wilson & Ratledge Issue

[McRabbet]

We need to make a final decision about payment to W & R concerning their extended billing for addition fees they have requested for assisting in our non-profit status with the IRS. On April 11th, I sent you all this email (the letter is attached in two parts):

As you all saw from my letter dated April 3[SUP]rd[/SUP], I requested a copy of the original invoice from Wilson & Ratledge, which they sent Monday of this week and I received today (copy attached).

One new piece of information that I was unaware of (and I suspect the balance of the current Board did not know as well) is that an initial payment of $2,500 was made (Check 2550 on 12/20/10) for the submission process detailed in the first 2-1/3 pages and then the additional $943.54 was for office expenses and the $850 IRS fee which Joe paid with check 1014 in early February 2011.

Each time I read the second invoice, I cringe at the same things that bothered me as I detailed in my earlier email dated March 1[SUP]st[/SUP]:

“... Frankly, I think it is unbelievable that they have taken this long to send us a bill for over $3,000 for their services, on top of a prior billing of $943.54 that was paid promptly upon completion of their work (I do not know when they invoiced NCWWI nor the content of their work in this payment).

Some items stand out: (1) No hours of effort are detailed; (2) Entries for Ms. Bennett (LWB) for 12/06/10, 12/14/10, 12/17/10, 12/20/10, 12/21/10 and 1212/30/10 all appear excessive (include $367.50 in telephone call charges); (3) Entries for MAL on 12/10/10, 12/30/10, 01/03/11, 01/07/11, 01/31/11, 01/02/11 and 02/04/11 seem more reasonable charges; (4) Entries for TJW lack definition of actual effort.”

So if we now pay them the additional $2,000 + $73.77 in office expenses, we will have paid out $5,517.31 ($850 went to the IRS) in total for their services to obtain our §501( c )( 3 ) status. I am certainly happy that the IRS didn’t turn us down. While I think it is entirely unprofessional on their part to delay this invoice process by more than a year, I fear we must pay their request for $2,073.77.

I would appreciate prompt comments so we can proceed.

Robert R. Payne, President
North Carolina Woodworkers, Inc.
70 Hounds Chase Drive
Hendersonville, NC 28791
(828)692-1426
(919)210-5914 (Cell)
rrpayne@bellsouth.net

I've heard from you as follows:

Other than telling us that we have paid the $2500 and the $943.54, what did the second letter say?

Ask for a copy of the documentation that accompanied the invoice that we responded to with the above payments.
Cathy

Biting my tongue and keep deleting my personal thoughts...
If it is a bill we owe we have to pay it.

No way to verify or confirm much - we are at their mercy.
If this is their expanded and explanatory statement, then
we have to proceed and make FINAL payment.

Sure keep deleting here...
I hope we are through with their services!
Andrew

Doug, you were the only one that had any discourse with them. What do you recall regarding this business?
Joe Scharle

Who wrote and who signed these two checks?
Cathy

I can only speculate here. Since the first invoice was not itemized as to charges, the initial price was probably an estimate or quote with the payment requested up front? I cannot imagine any law firm or other business experienced in their profession missing an estimate by that amount. Some of the charges shown in the second invoice reflect additional work or clarifications on IRS forms info. If they were familiar with this type of process, why were they asked to clarify by the IRS? It seems we will be paying for their lack of competence here.

Dennis Reynolds

I expect this to be discussed and decided in the BoD forum.
Please do not send any more letters before you give advance notice of the content.
Barbara

Those comments were all made within two days of my email, but I never have heard anything from Doug Robinson. I am going to PM him today and ask him for his recollection about the funds paid to W&R and his final recommendation. We do need to discuss and respond.

 

[CaptnA]

...

 

[McRabbet]

I got an email from Doug Robinson tonight after sending him a second copy of the second letter from W&R. Here's what he said:

Your comments are well thought out. I think that the itemization should be more detailed. I am glad you found the checks for services and fees paid to date. I did not expect another bill. Are they willing to give a more detailed itemization? We could then determine the validity of the charges. I do agree that we will probably have to pay the bill in the end.

I do not think at this point that we should request more information or details, because IMHO, I think they would be padding on their old padding. We are dealing with an unprofessional group of lawyers and all we can do is to write a letter that expresses our disdain for their piling on charges without advance notice to my predecessor and then waiting for more than a year to add over $3,000 in additional charges. I also propose that we report their action to the NC State Bar Association (they have a Fee Resolution Program).

I'd like to hear from other Board members so we can move forward without delay. Thanks.

 

[Gotcha6]

Let's go the Fee Resolution Program ASAP. I don't believe an attorney that waits that long to submit a bill would be justified in expecting a prompt payment either.

 

[CaptnA]

I don't know what to think honestly.
I'm inclined to say pay it and move on -

 

[cskipper]

I agree with Dennis and am inclined to go to the Fee Resolution route.

 

[TracyP]

I would not just pay the bill without proof we owe it and I have yet to see that in what they sent unless I missed something. Fee resolution sounds like the way to go.

 

[McRabbet]

I have yet to see that in what they sent unless I missed something.

The letters with their invoices were in two emails I sent out in March and April. I will email you copies.

 

[b4man]

I believe the NC Bar route is premature.

I think we just need to write them once again and simply explain our feeling that with what we paid up front and paid upon first invoicing after the work was done we had every reason to believe we had paid reasonable compensation in full.

The lack of professionalism displayed on their part by sending not only an inflated invoice but a year after the fact is suspicious.

If they wish to discuss further we will be happy to do so however it may require the review of our current attorney before we can come to another conclusion

 

[cskipper]

Yeah, what Barb said. If you are feeling aggravated and want another pair of eyes to review the letter before you send it, just let us know.