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Wisconsin's BBB New Rating System Grades Law Firms

published March 20, 2009

By Author - LawCrossing

( 23 votes, average: 4.6 out of 5)

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03/20/09

According to Randall Hoth, President of Wisconsin BBB, ''The first realization is the client must be in a business relationship with the firm. Someone can’t just come in or call up and say, ‘I don’t like this firm because of what they charge.''


The new grade rating system is based on 16 different facets including the length of time the company has been in business, number of years it has been accredited with the BBB, and the amount of received and resolved complaints the BBB has received against the company in the past 36 months.

Some attorneys are questioning the legitimacy of the grading system citing reasons that the practice of law cannot be defined within a single letter grade because it is difficult to define.

Kathryn McGrane-Sargent, a solo practitioner who received a C grade, remarks, “I don’t know if it makes me a better lawyer because I get an A rating. It’s not going to change the way I practice.”

Hoth acknowledges that the BBB receives over 800,000 inquiries annually and the majority are not directed at the legal profession, however he concedes that ''the ratings still hold relevance for law firms in that they provide more transparency for the consumer.''

According to the BBB, out of the 211 law firms that were graded, 90 percent received at least a B plus grade. Businesses are not required to forward information or respond to complaints filed with the organization and the assessments are voluntary. Hoth explains that the business profiles are generated when consumers make an inquiry or after the BBB receives a complaint. The BBB will make three attempts to contact the business within a 30 day period.

Hoth explains that grades can change almost in real time and “if you have one unanswered, unresolved complaint with the BBB and you are a small law firm, you could very well have an F.''

The BBB has 13 law firms with an 'F' rating as of March 10 and in one particular profile, the profile generated by the BBB notes that ''insufficient background information on the firm contributed to the rating.''

According to Hoth, the BBB receives 1300 complaints monthly and some cases are found to be inaccurate. ''We make multiple follow ups [with businesses], but we could have a bad e-mail, or the complainant could have supplied bad data. It does happen on occasion.”

Attorney Michelle B. Fitzgerald, founder of Horizons Law Group LLC in Wauwatosa and board member of BBB directors, emphasizes that the new rating system ''should provide an incentive for firms to be recognized as reputable businesses.'' Horizons Law Group LLC is a BBB accredited business with an A+ rating from the BBB.

Fitzgerald suggests that 'for firms that aspire to get good grades, those grades can serve as a vote of confidence for prospective clients who might otherwise be wary of hiring an attorney.'

Fitzgerald is confident that once consumers become aware of the BBB's new grade rating system, it will be important for lawyers to be listed and rated with the BBB. ''Right now, a small group of us [law firms] are benefiting from the fact that more lawyers are not aware of the program.”

Some law firms are not happy with the BBB's rating and question the validity of their current rating. One law firm receiving a C minus grade questions the rating because the firm has not received any complaints in the last 3 years. Ronald L. Diersen, managing partner of the law firm Rizzo & Diersen Associates S.C. points out that he wasn't aware of the evaluation and feels the ratings judge firms unfairly.

According to the BBB, the rate is a reflection that the BBB doesn't have ''sufficient information to determine how long the firm has been operating, or sufficient background.''

Regarding Rizzo & Diersen Associates, Susan Bach, Director of Communications for the BBB, responded that ''the organization has twice attempted to contact the firm to complete its Standard Business Questionnaire to provide additional background information.'' Bach points out that on both occasions, the firm did not respond to their request thus the reason for the C rating.

Kathryn McGrane-Sargent, adds that after being contacted by the BBB, she has scheduled an interview with the organization in hopes the meeting will upgrade her profile rating. According to the BBB, her C grade rating is based on lack of information. However, McGrane-Sargent, points out that her profile states that she started practicing in 2008 but in fact, she has been a practicing attorney since 1985. Last year, after 11 years, McGrane-Sargent and another attorney dissolved their firm and she opened her own law practice in Elm Grove.

In closing, McGrane-Sargent, remarks, ''It’s seems to be an arbitrary rating, especially if I was rated as a brand new business despite having practiced for 25 years. It could be a real turn-away for a lot of people.”
( 23 votes, average: 4.6 out of 5)
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