We refund fees to unhappy clients if they have legitimate complaints. We're so customer-focused this has only happened two or three times in 29 years. As a rule, we don't refund fees if the client has received more than they paid for, or if they're simply trying to take advantage of us. However, even if a client is totally irrational, and you've served them perfectly, it's sometimes best to return the fee and get on with your business. In this case, we had over-served the client, sometimes assigning two consultants to his case.

This disgruntled client asked to end our relationship after eight months of successful work, and he wanted 60% of his pre-paid fees returned. He was very demanding and threatening. We were concerned about the legal ramifications of any action we took, and also wondered about our legal liability.

Although the client was out of state, we felt a threat. I called our corporate attorney who is experienced in conflict resolution, explained the situation to him, and faxed several documents for his review. He reviewed the documents and counseled us in a 30-minute phone call. The situation was resolved favorably without our having to make a refund. As a thank you, I sent this note and included a $50 gift card for Barnes & Noble.