18 March 2021 · Season 2, episode 7 · 35 min

Neha Chugh

on starting a practice in Cornwall, hiring, cash flow, Legal Aid, and access to justice

No.31
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Pulat Yunusov

Hello everyone, this is another episode of The Yunusov Question, a show, a YouTube show and a podcast about lawyers where we humanize lawyers. We show the human side of lawyers. I mostly talk to lawyers from Ontario, even probably from Toronto or from the Toronto area. But today We have my good friend, a law school classmate, an Osgoode classmate, Neha Chugh, and she's not in Toronto right now. Where she is, it's an interesting story, and we will ask her about it. But first of all, hello Neha, how are you?

Neha Chugh

I'm so good, and I'm so happy to talk to you, and I'm so happy to connect with you after, what is it, 10 years, 11 years since we graduated?

Pulat Yunusov

Yes, so we graduated in 2010. This year will be the 11th year of our graduation, and it will be the 10th year of our call to the bar.

Neha Chugh

Amazing, so amazing.

Pulat Yunusov

Yeah, I I talked to in my previous episode I spoke with Andrea Sanche or Sanche, actually. It was also a discussion on, on the show about the pronunciation of her last name. She's a good friend, she's an amazing person, a lawyer here in Toronto, and we talked about the 10+ lawyer, the 10+ year lawyer in the previous episode, in one of the previous episodes. I'm not sure in what sequence this particular episode will come out, but I want everybody to go and watch that because it's a really interesting threshold, don't you think? The 10 years in practice,

Neha Chugh

it's really a pivot point. I've been thinking about that since January of this year, and we're at a turning point really about what do we want to do, what do we want from our careers. Okay, now we're kind of established as lawyers, we know what we like to do, but what's next? So for the first 10 years, it's about, okay, I'm here, I'm a lawyer now, and then after 10 years, it's What's next? And so that's kind of an interesting conversation to have with yourself.

Pulat Yunusov

Exactly. And we will bring this up again, I think, today, because both of us, you and me, are at that threshold right now. But before we go there, I want to ask you something. Do you have a LinkedIn profile, Neha?

Neha Chugh

No, I don't have a LinkedIn profile. And really, the extent of my social media is Twitter. I need to— I really do need to work on a LinkedIn profile, and my office runs my Facebook account, so I don't go on Facebook. But these are all the things that I used to do as a law student that I ran out of time for as a lawyer, but I should get back on LinkedIn, right?

Pulat Yunusov

I don't know. I told you before we started recording that I think you're all set for marketing purposes. You're pretty in pretty good shape. I think we need to clarify to our audience that you've always had your own practice, correct?

Neha Chugh

No, for the first 2 years I worked for a firm. I articled in Toronto and then in Ottawa for 2 years I worked for a firm, and then my husband's job took us out of town, out of province actually, and a lot of things changed for me, and I was I found myself, I guess, out of work and having to make a decision about what I wanted to do next. And so I broke out on my own in 2014. So in October of 2013, I had a baby, took some time, figured out what I wanted to do, and 2014, officially, I opened up my practice.

Pulat Yunusov

I always check the person's LinkedIn profile before doing an interview for this show. And imagine my surprise when I didn't find your LinkedIn profile when I was preparing for the interview. But I found something way better than a LinkedIn profile. I found your responses to questions from Erin Cowling for her series Women Leading in Law. So it's basically a blog post on her website where, with your responses to several questions, where you tell about yourself in a style that I think would do honors to a pretty decent writer of short stories. I think you have literary talent, and I'm serious about it. Usually posts like that, not, not Erin, not on Erin's website, but usually when people talk about themselves, they speak in platitudes.

They say a lot of the things that everybody really has heard before. But when I was reading your answers to her questions, I was really absorbed. It was a story. You know, you call your parents South Asian tiger parents, and you talk about your firm's growth, and you talk with unusual specifics. So it's really important, I think, that people talk specifics. And one of the big topics for my conversation with you today is law firm growth. I'm personally very interested in it. I've had my own practice also for several years, in fact, since day one. You talked in in your answers to Erin's questions, you talked about buying your own office eventually, right?

So tell us about the path from a small room in the chambers. Was it under the staircase or something like that? Something like that,

Neha Chugh

right? Right at the bottom of the staircase. And right at

Pulat Yunusov

the bottom,

Neha Chugh

all of the movers and shakers in that building would pass by my doors, and I would get so nervous when they would walk by. I would, I would sit up straight. I would pretend to be working really hard and not just staring out the window, and everyone would walk by and I would be so excited to make their, their, their company. But we started small, and honestly, it was a combination of happenstance and coincidences. So we— I started in that small office at the front And then a 3-room office became available at the back. I think it was a company that was going out of business and they wanted the cheaper office space at the front.

So they came to me and said, "Will you switch?" And I was thinking, well, what am I gonna do with such a big office? But it would be nice to have the extra space. And so I jumped on it for an extra $50 a month. Just happenstance. And then I needed an assistant. I realized that I was missing calls. I was in court. I thought to myself, if I invest in an assistant, then maybe I'll be able to get home for the kids on time. Maybe I'll be able to really be able to focus on the law and not have to do all of this administrative work. And I'd be willing to take the pay cut and invest in an assistant.

I missed the interview with the assistant that I had in mind, the person who applied, because I got stuck in court. So I told her to meet me at the courthouse where she sat outside the courtroom with her resume in hand. She handed me her resume and I said to her, it was a Thursday, and I said, "Can you start Monday?" And so that was just, again, coincidence, happenstance. She was forgiving of my time. She started with me. She occupied one of the rooms in the 3-room office. And then in terms of growth and people growth, I ran into someone at the courthouse and I liked the way he worked. And I thought to myself, I don't want him to be my competition.

And I like him. And he needs to work with me and not against me. And so we have been dear friends since, and we just became business partners. And that, that is a business relationship that again, It just something came in my path and I followed my gut and my gut instinct on that. And then from there, I thought it's time maybe to start loosely looking for an office building to buy because we're putting a lot of money away into rent and working in a small town, the office buildings are not as expensive as perhaps a building in Ottawa or Toronto. So I just put it out there with some lawyer friends in Cornwall that I was looking, and someone came to me and said they had a client who was selling their office building and the price was right.

Again, just coincidence. And then surprise, I have a brother who goes to law school and comes back and says, "I wanna work with you." So another lawyer joins our firm. And then it turned out that I had this growing family law practice and my passion is really criminal law. And I saw a young man working in family court in the duty counsel office, and I saw him running a motion and I knew his contract was coming up. And I went to him and I said, So what are your plans? Are you interested in joining our practice? Because again, I wanted him with me and not against me. And all of a sudden, we were 4 lawyers.

And then a young woman dropped off her resume at my office, and the timing was right. Her timing was right. The family law practice was burgeoning. The criminal law practice needed help. And then we were 5 lawyers, and here we are with just coincidences and gut feelings and growth and investment and taking risks on people and believing in people, but also being a fun and engaging place to work. So that's, that's my story. And There's much, much, much to it, more to it. And I think that as self-deprecating as my blog was to Erin, Miss Cowling, I think that what I'm leaving out is a lot of heartaches and, you know, nights where I stayed up all night thinking, is my mortgage going to bounce tomorrow?

Or I hope that I can pay my employees next week. You leave all of that out because at the end of the day it's all worked out and I've gotten to this point, but not without a lot of support and a lot of friendship from the people I work with.

Pulat Yunusov

So let me sum it up. You're from Toronto, right?

Neha Chugh

Yeah, I'm actually from a town called Guelph, which is about 45—

Pulat Yunusov

Okay.

Neha Chugh

Toronto. Yeah,

Pulat Yunusov

well, you're from the extended GTA, so, so to speak. You're from Guelph. You live in Montreal or in Montreal suburb right now, just so our audience knows, correct?

Neha Chugh

Yes.

Pulat Yunusov

And your law practice is in Cornwall, correct?

Neha Chugh

Yes. And there

Pulat Yunusov

we never told anyone about this until now.

Neha Chugh

Well, I, you know, I have told people about it. So what

Pulat Yunusov

I mean, in this interview.

Neha Chugh

Yeah, not in this interview. So my practice is in a town called Cornwall, which is a town that is probably the first city just over the Quebec border on the 401. And it abuts with the American territory and with the reserve, the Mohawks of Akwesasne Sasmi, and is a wonderful francophone community. It— what brought me to Cornwall, if you told me when we were in law school, Pulat, if you told me that I was going to be opening up a practice in a town called Cornwall, Ontario, I would have said, where? What? Who? No, that's not a— I would have said that's not a place.

Pulat Yunusov

It's a drive-over country when you go to Montreal, don't you remember?

Neha Chugh

Well, I don't think I had ever even been to Montreal in my life. I think the closest I had ever gotten to Cornwall was Ottawa. And the— what happened was I went to law school in Toronto, with you. Actually, no, in North York. We went to law school in North York, not Toronto, and articled in Toronto. And then my spouse he's an academic, he got a postdoc in Ottawa, and so we moved to Ottawa. I spent the first 2 years of my practice with a wonderful mentorship in a wonderful firm in Ottawa. And after that, after he was done his postdoc, we had a 2-year-old and I was also pregnant with our second, and he gave me the choice.

He said, I have 2 academic positions that have been offered to me, one at the University of Manitoba and one at Concordia in Montreal. I'm going to let you decide because it's going to affect your job. And I'm pregnant with our second, with a common law Ontario law degree and don't speak a word of French. And I was like, what am I going to do in Montreal? So I looked at a map and I said, well, it looks like we can live on the western suburb of Montreal. You can commute in and I will commute the opposite way. So every morning we split We kiss each other on the cheek and we split. He goes one way and I go the other way.

And then we meet back in the middle at the end of the day.

Pulat Yunusov

Unbelievable. This is a great story. I want to go back to Law Firm Growth. You talked about starting from that small room and growing to your own building. This is a 4-story building in Cornwall, right?

Neha Chugh

Yes, 4 stories. Yes.

Pulat Yunusov

Yeah, I know that from Erin's website, from your interview with Erin. And do you share it with other lawyers that are not affiliated with you? It's just yours, right?

Neha Chugh

We take up every corner of that building.

Pulat Yunusov

Amazing.

Neha Chugh

Every corner either has a desk in it or a bookshelf.

Pulat Yunusov

Does your practice consist— oh, I see your cat there.

Neha Chugh

Yeah. I got that cat in law school and she's still kicking.

Pulat Yunusov

Oh wow,

Neha Chugh

that

Pulat Yunusov

tells me she's just like me. Just like me. You met me in law school and I'm still kicking.

Neha Chugh

You're still kicking, you're still around.

Pulat Yunusov

So look when you started your your own practice and it was 2014, did you have any kind of marketing plan? Did you have any kind of strategic plan? Did you have any Did you set any goal to own a 4-story building 3 years later or 3 and a half years later you acquired that building? Did you have any plan like that? How, how, how was it?

Neha Chugh

No, my plan was to be a criminal lawyer. And for the first 6 months of my practice, I didn't even bill a single account because I didn't know how. I was in a financial mess. I had no paperwork. I had nothing. I got my act together though, because I realized—

Pulat Yunusov

How did you get your act together?

Neha Chugh

I hired a bookkeeper who worked with me 24/7. To get my act together. So that first 6 months, I was I was a total mess. I was a total wreck. I had no plan. I was letting things just fall into place for me, which, you know, if you rely just on luck it's not always going to carry you. And so For example, I, in the first, the second year of my practice, I had a financial audit and the financial auditor came in and my bookkeepers were there with me. And the first day he was there, it was not pretty, even though I had bookkeepers working on it and I had two bookkeepers there, my assistant was there, we were all sitting at the boardroom table.

With the auditor trying to get this organized, and still we had— he had to freeze everything and come back the next day and continue doing it. And but through that process, that very scary process, the following year when they attended, they said, "We have no complaints. This is perfect. This is great." And so A lot has been learned through mistakes and through teaching, through accident and through the heartache of having to go through that process. So no plan, relied on luck, relied on coincidence, realized the importance of a plan and the importance of planning, still don't have a 20-year plan.

Pulat Yunusov

Mm-hmm. But you already have a building, so you'll be okay. Is legal aid a big part of your practice?

Neha Chugh

Yes, and it's the kind of work that we do, and it's— early on, I realized what my strength was, and my strength is working with clients and working with clients in need. And my strength is really working with mental health clients and working with families. And so my practice, I would say that my practice is about 70% legal aid. And there's always that goal to start doing less and less legal aid as the time goes on. But it is a skill set and a people set, skill set that I really enjoy working with and enjoy having. And so, yes, legal aid is a huge part of my practice, both family, criminal, and child protection.

Pulat Yunusov

Have you scaled your practice up by hiring additional lawyers or by having more clients or by just billing more hours personally? What was the most significant strategy in growing your practice over the years?

Neha Chugh

So my mantra or my way of looking at things is you never want to leave money on the table. And when you're leaving money on the table, that's when it's time to hire. So when I was missing phone calls or not able to attend to a client's needs, even if it's an unpaid need, an unpaid phone call an unpaid bail variation, a letter for a family law client that I might not be compensated for. It's still, that's still part of client management and client retention. And as soon as that was happening, because I knew that that work would mushroom into other work, as soon as that started happening, I realized that it was time to hire and It also is a balancing of keeping my spouse happy, because if it's 7 o'clock at night and I'm sitting at my computer writing that letter and the kids need homework help or the dishes need to be done, I have to keep the spouse happy, and that's when it's time to hire.

Pulat Yunusov

What is the most difficult thing about keeping people on payroll, about having employees? I mean, you talked about the early days when you had nightmares about not meeting payroll, for example, right? So I think it's everyone's nightmare who considers hiring people or who has people on payroll in an unstable environment, which legal practice can be. So what, what, what is the most difficult thing for you in having people on payroll, or has Or have all problems been pretty much already managed and solved?

Neha Chugh

No, Pulat, everything is perfect.

Pulat Yunusov

I have to switch to the gallery view to show that I understand your sarcasm. I'm smiling.

Neha Chugh

No, OK, so money, taxes. But all of the money stuff and the taxes is what that comes down to is cash flow. And what cash flow comes down to are dockets and billing. And what dockets and billing come down to, and this is the scariest thing for me, is raising my voice, being assertive, and saying, where are your dockets from today? How come you didn't bill that file? And speaking to your employee outside of the friend zone and in the, I'm your manager and I have cash flow to manage in this business and I need you to meet my cash flow needs. That is the scariest part because the rest of it is just math and accounting and that will all fall into place if you can assert yourself and say, I need you to do the work that I expect you to do.

Pulat Yunusov

Does it help your cash flow that 70% of your billings go to legal aid? Are they good? Are they good? You know, like Lannisters always pay their debts. Does legal aid always pay its debts? I don't have any experience with legal aid. I'm sorry.

Neha Chugh

So legal aid is a reliable source of income. Criminal lawyers and family lawyers will complain that the tariffs are not high enough and that the hourly rates are not high enough. For example, they'll give you 15 hours to do something and it will take 25 to 30 hours, and most lawyers will put in more hours. I think the adage is that for every billable hour you're doing one non-billable hour, is what I've heard many lawyers say. And so, but legal aid is a reliable source of billing. And if you get on the billing cycle, which is a 2 or 3 week, 2 or 3 week turnaround, then the cash flow will be there. So when you have a legal aid certificate, you know that you're going to get paid a certain amount for that file.

And so it becomes a reliable stream of income. The high-volume aspect of it then gives you the amount of files and the amount of cash flow that you need in order to manage the payroll and the tax needs of your associates.

Pulat Yunusov

I have a question about the remaining 30% of your billings and the character of clients that constitute that remaining 30%. Do you find that these are mostly people who can afford a lawyer, that is, in our day and age, wealthy people, or what kind of clients are they generally?

Neha Chugh

So I am a huge believer in access to justice and ensuring that the playing field is equal. And one thing I want to say right at the outset is clients ask me, will I have a different level of service if I pay you cash? And no, I don't look at the retainer and determine what kind of service the person is going to get. It's a wide gamut of types of clients. Most of my clients are middle income, low to middle income, but don't qualify for legal aid because legal aid cutoffs are very low. And then we start talking about payment plans and we start talking about block fees And we really try and tailor our invoices or our bills, our block fees to meet the client's needs because we want to ensure that they have good representation and that access to justice is available for them.

But we also want to make sure that we're getting paid, right? We are lawyers and we should get paid for our work.

Pulat Yunusov

Does your firm religiously track time billable and non-billable? And specifically, I'm interested in data analytics. For example, do you track your effective rate after all the non-billable time and non-collectibles are accounted for?

Neha Chugh

Oh, I wish I did. No, the truth of the matter is we don't, and we should. I know we should. And I know that that would be good for me, but we have so many clients that just need a voice on the other end of the phone, and we spend so much time doing that. And a lot of our time is spent on non-billable court work like remands, remand court or audio remand court, waiting in Zoom court, waiting in plea court for our turn.

Pulat Yunusov

So scheduling.

Neha Chugh

Exactly, exactly.

Pulat Yunusov

And so Legal Aid doesn't pay for scheduling time?

Neha Chugh

No, they don't. That's a

Pulat Yunusov

really good job. Go ahead. Sorry.

Neha Chugh

That's a really good job for an articling student. And that's where I started as an articling student was scheduling courts.

Pulat Yunusov

Do you find that you spend less time in scheduling now that Zoom is pervasive in our court system?

Neha Chugh

No, no, I spend more time in Zoom court than I did in the remand court. I wish I spent less time. I spend less time commuting to work because I do it from home, but I spend more time in Zoom court, and we go by the Barristers Act in Cornwall, so I have to wait for my turn, and believe it or not, I'm quite young compared to my Aren't you being

Pulat Yunusov

bumped up now that you're crossing the 10-year threshold?

Neha Chugh

The problem is, is that all my colleagues are crossing their own thresholds too.

Pulat Yunusov

50, 60-year-old threshold?

Neha Chugh

Yes, and so I have to wait my turn. And so it's a long

Pulat Yunusov

wait.

Neha Chugh

It can be a wait. And you know, there's a lot to be said about the time that you spend in the law library having a coffee there's a lot of work, unspoken work and unsaid work that happens in that time that you don't take account of or credit for connections that are made and contacts that are made.

Pulat Yunusov

So you entered the Cornwall legal market in 2014. And tell me a little bit about this market. So it's, it's this town of Cornwall, which is what Population, I don't know, 10,000?

Neha Chugh

It's about 50,000.

Pulat Yunusov

50,000? Okay, good. So are there any other towns or villages that include— are included in this legal market that you serve?

Neha Chugh

So the city of Cornwall has two surrounding satellite courts, I would say. So it's the counties of Stormont, Dundas, and Glengarry. Dundas is Morrisburg, which is west, and Alexandria is Glengarry, which is east. So they have two satellite courts and we serve those three courts, but I still have work in Ottawa. I have— we're, as of March 1st, we've opened a satellite office in Hawkesbury. So in the very small town, it's called L'Orignal. Where the office is going to be. And well, as of March 1st, we are now open there. And Brockville, I do quite a bit of work in Brockville as well.

Pulat Yunusov

What's the radius and driving time of the area that you serve? 2 hours?

Neha Chugh

So Brockville is 2 hours from home, so an hour and 45.

Pulat Yunusov

That's a huge area.

Neha Chugh

Yeah, but it's, it's rural. Right. And so in the GTA, I remember I was driving everywhere— Brampton, Newmarket Oshawa— for courts. I think I spend less time on the road now than I did when I was articling.

Pulat Yunusov

I'm really curious about this region. You came into this region in 2014. By my count, you created at least 4 jobs in that region. Maybe more, through your spending, probably contributed to many more jobs in that region. You have provided valuable services to the community for years now. You've prospered, you've succeeded, you've acquired real estate. Tell me about this region and tell me about this legal market. What is it about this legal market and this region that enabled you to achieve this success, that accommodated you, that accepted you, that gave you this opportunity?

Neha Chugh

It is the most generous and accommodating and welcoming area I've ever lived in, with no disrespect to Guelph where I grew up and spent my teenage years. So thank you for having me there. I was a terrible teenager. And to North York where I went to school, to law school, and to Toronto where I articles. But I always thought that I was a city girl, but having the opportunity to work with people from rural community, the small town love is just amazing. What I've been able to do in Cornwall is to use my strengths as a social worker, so with my social work degree, We are in the midst of— I was going to say at the beginning of, but we are actually in the midst of an opioid crisis in the country.

We are— we have issues with overrepresentation of Aboriginal people in custody. And I'm very, very blessed to have good relationships with the Akwesasne justice system, which is just next door. I, through my practice and through my skills as a social worker, was able to make good contacts and connections with the social workers in the area, so the youth social workers and the child protection workers, who were able then to see my strengths as a lawyer but also as a social worker, and then to give back to the community in that way. The region has, you know, just— you fall in love with the people, right? The people are so kind and so willing to help you, and I haven't looked back.

Pulat Yunusov

You know, I could go on and on. I have so many questions for you. I respect and admire you. I want to say this outright, and I've learned so much from you even today just from this short interview that I can directly apply to my law practice. And I find that you are a magnificent human being, and I hope that I can pay you a visit after the pandemic and maybe learn even more over lunch. What do you say to that?

Neha Chugh

As long as I can buy.

Pulat Yunusov

Thank you. You have a building, you should buy it.

Neha Chugh

You pick, I buy. You pick the restaurant, I buy.

Pulat Yunusov

All right, sure.

Neha Chugh

Okay,

Pulat Yunusov

this has been great. I really enjoyed this, and I'm really sorry to wrap up. It's been one of our longer interviews. And we'll be in touch.

Neha Chugh

That better be a promise.

Pulat Yunusov

It's a promise. All right, hold me to it.

Neha Chugh

Okay, good. Wonderful.

Pulat Yunusov

Thank you, Neha.

Neha Chugh

Take care. Okay, bye.