Attorney Harry H. Kutner, Jr. had fees overdue and he was waiting for the client to pay.  Sound familiar?  Today’s NYLJ , written by Daniel Wise reports:

"The retainer agreement, drafted by Mr. Kutner, gave Mr. Antonacci 15 days from the time a bill was sent out to make payment without being assessed interest.

In the event payment was not made within 15 days, the agreement explained that a 16 percent interest rate would be assessed to "encourage your prompt raising of any disputed time or services billed" and "to prevent an outstanding balance from being a source of friction between you and me, thereby protecting the fragile attorney-client trust arrangement."

In the agreement, Mr. Kutner also explained that he was charging 16 percent interest because, otherwise, in effect, he would be subsidizing a loan to Mr. Antonacci who would have had to pay at least 16 percent to borrow the funds on his credit card. "

"A requirement in a retainer agreement compelling a client to pay 16 percent interest on unpaid fees is excessive and unenforceable, a Nassau judge has ruled.

Instead, the client must pay interest on the unpaid fees at a rate of 9 percent, the amount of interest allowed by statute to be collected, both pre- and post-judgment, on amounts found collectible by courts, District Court Judge Gary F. Knobel ruled in Kutner v. Antonacci, 36363/06. [subscription]