Fueling Business Concerns

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Lance M. Nelson is a solo practitioner in Superior, who specializes in criminal defense and filling up his gas tank.

On a weekly basis, Nelson pumps almost $150 of his own money into his Toyota Corolla and drives to meet clients, sometimes 200 miles away.

Like many attorneys in the northern part of the state, Nelson regularly travels cross-county and some lawyers are absorbing more of the travel costs associated with escalating gas prices.

“When I started out, it was not a big deal and I was grateful to be out on the road,” said Nelson, who started Nelsen Criminal Defense, LLC, in 2006. “Now, it’s a different story.”

“It’s really taking a bite out of my ass,” said Nelson, who also takes on State Public Defender appointments.

Passing the Buck

Small-firm attorneys are also bearing the brunt of a $4-gallon of gas, although some pass a portion of the expense on to the client.

Attorney Parrish J.R. Jones, of Knudson, Gee & Torvinen, S.C., in Superior, said clients are charged an extra rate if a lawyer has to travel extensively to meet with them.

The Internal Revenue Service (IRS) permits a business to charge 50.5 cents per mile for travel.

“We’re frequently bouncing from county to county, but we’re not feeling the pinch as much because we bill our clients,” said Jones. “It’s probably hurting the individual clients who have to end up paying for the gas.”

Jones said because the firm primarily does insurance work, the seven attorneys there routinely combine to bill several thousand dollars annually for mileage alone.

But the IRS rate, which was 48.5 cents last year and 44.5 cents in 2006, does not cover all of the gas guzzled by an attorney’s car, said Jones, who is personally responsible for paying the difference.

“The rate is woefully inadequate and all the attorneys seem to be driving Suburbans too, so when we use the rate, we’re probably losing money on the whole,” said Jones, who does not usually bill for shorter trips.

Staying Closer to Home

Attorney Michael B. Winter, of Winter & Winter in Antigo, said that while he does not charge clients for mileage, he does bill for travel time.

“I’ve felt that was enough,” said Winter, who also works part-time as the Antigo city attorney. “I don’t travel all that much, so it’s not a significant expense.”

The same is true for Hurley attorney Paul A. Sturgel, who practices elder law and frequently travels to Superior, which is 100 miles one way. Sturgel builds mileage costs into his flat fee.

“Each case is different, and I haven’t really adjusted the rates, but with gas over $4, I might have to consider it,” said Sturgel.

Winter said he would consider the cost involved if a potential client asked him to travel beyond the neighboring counties of Marathon, Shawano or Oneida.

“I might suggest they contact someone in the county they are in,” said Winter.

Nelson said he is reluctant to assess clients a mileage charge, in part because he is trying to establish a client base.

At the same time, he chews up a lot of mileage with State Public Defender appointments, for which he is reimbursed $25 an hour for travel. But rather than get additional reimbursements for mileage from the SPD, Nelson takes the tax deduction at the end of the year.

“Other attorneys have told me I’m crazy, but I think clients really resent it when you tell them they have to pay for you to drive out to see them,” said Nelson.