Business Referral Turned Bad Form

I was awakened during the middle of the night by a phone call from an unlisted number. Half alert, I answered the call. A recorded message stated, “An inmate from the County jail is on the line. Press one to accept.”

My mind immediately went into overdrive, racing to make sense of the situation before me. Giving in to my curiosity, I accepted the call.

On the other end of the line was a dear friend, Matt. He had been involved in a physical altercation, resulting in his arrest. I was his lifeline; his one call.

Shaken up and confused, I attempted to calm Matt in hopes of obtaining the facts. I racked my brain to think of a contact who could provide guidance.

First thing the next morning, I contacted Ron, a defense attorney whom I had known for a few years. I shared with him the information that Matt had provided me, including the fact that Matt had never been arrested or had any previous brush with the law. Given the jail’s overcrowding, I assumed that Matt would be processed and released in short order. Ron wasn’t as convinced and offered to make a few calls to the jailer on my behalf.

A few hours passed before Ron called back. He painted a bleak picture, and suggested that Matt engage legal counsel. Unfamiliar with the criminal side of law myself, and with Matt’s best interests in mind, I formally engaged Ron by signing an engagement letter and providing a retainer. The agreement and monies paid were for Ron’s representation at upcoming hearings and expunging the arrest from Matt’s record. Ron specifically stated that his time on the matter up to that point was complimentary based on our business relationship.

Two hours later my phone rang. It was Matt. He had been released from jail and needed a ride home. He explained that the entire situation had been a misunderstanding, that no charges would be filed, and his record wouldn’t be affected.

I immediately called Ron. Getting his voice message, I updated him and followed up the call with an email detailing the good news. In my correspondence, I referenced the agreement I had signed earlier that day and how it was no longer needed as the matter had been resolved. I believed that Ron would agree and return the retainer amount.

The following day, I sent Ron a bottle of wine with a handwritten note, thanking him for being available had the situation escalated.

A week passed. Sitting in my office, Ron called. He stated that, as far as he was concerned, our agreement was still valid and he wouldn’t be returning the retainer. I was stunned.

Those of us in professional services understand that a majority of business opportunities result from referrals from other professionals–CPAs, bankers, business managers, financial planners, etc.

When we act in bad form, we damage those referral relationships that we rely upon for future business.

Speaking of greed, a great man once told me, “The institution may be able to survive the loss of money, but the individual can’t survive the loss of self respect.”

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