Legal Question in Business Law in Colorado
Large legal bills
How can a client determine if he is being overly charged for legal counsel. Our upstart company is being sued by a former employer for infringement of trade secrets. The former employer has slapped a TRO on us and we are 30 days away from a preliminary injunction( was pushed out 30 days from original date). The lawyers are $150,000. into fees and we are only this far. This seems very high to us.
5 Answers from Attorneys
Re: Large legal bills
The TRO/preliminary injunction process essentially requires the parties to prepare paperwork presenting the equivalent of a mini-trial of their case.
Thus, it is a very expensive process and a lot of legal fees get racked up on both sides within what is usually a 30- to 45-day period.
It is impossible for any lawyer to evaluate this sort of thing from a distance and in the abstract.
In general, I wouldn't bat an eye at someone saying that they had to pay $30K to $50K to go through something like this.
$150K seems on the high side, viewed purely in the abstract, but might easily be reasonable if your case is complex. Of course, if you are using a large law firm, the billing rates will be high as well. That can make a significant difference in the overall bill, though it would not in itself constitute overbilling (that is just how big firms work and they do offer considerable expertise).
The only way to get a good grip on the propriety of the billings is to sit down with an experienced attorney in this field and get a second opinion after reviewing the detailed facts of your situation.
Hope this helps give you a general picture anyway of what you might do.
Re: Large legal bills
Without commenting on your case or those fees, in general, a client should be provided regular detailed billing statements showing the specific work done and the charges. The client should meet and discuss any concerns over details with the attorneys. If the client can't satisfactorily resolve their concerns and disputes, and still believes they are being overcharged, they can request their local Bar Association conduct a formal 'fee dispute resolution'. Such proceeding is generally 'biased' in favor of the client because the attorney is required to justify to an independent arbitrator the fees in question, and it is amazing how reasonable the parties can become in such proceedings. The client can also replace the attorneys at any time, to stop additional charges being incurred.
Without knowing your case or facts, I can say that such technology dispute cases can get expensive and ugly. However, it takes substantial attorney time to run up a $150k bill, even at the high hourly rates for senior partners in large law firms.
Now, if you are serious about seeking a second opinion about the case and billing, to see if your feelings are justified, feel free to contact me to arrange.
Re: Large legal bills
Is this in Colorado or CA? Is it federal or state district court?
It really is impossible to say if this is excessive or not. It depends on the firm, the complexity, the court, so on. If this is a Colorado state matter, I would say this is certainly very high.
Feel free to contact us if you have questions if this matter is in Colorado.
Re: Large legal bills
I do many TROs and OSC/preliminary injunctions. My firm charges $190 and hour while some larger firms are charging $350-$500 an hour and have a team of multiple lawyers and paralegals all billing to work on the same case at the same time. That can increase your fees substantially. It also depends on what type of litigation it is and whether it involves multiple parties rather than just two parties. Whether experts need to get involved at an earlier stage. Rhe average complaint & preliminary injunction at my firm costs less than $10,000. So $150,000 sounds very high. I do attorney fee audits and fee dispute arbitrations so if you would like further assistance in determining the fairness of the billing, please contact me. I have an office in San Francisco as well as Sacramento. Please visit me at: www.lawbarron.com
Re: Large legal bills
That sounds like a really large bill for what you're describing, but it would be unfair to your present attorneys to pronounce the billing "unfair" without knowing what was done and why it was necessary. I think the best comment I can offer regarding this post is that this presents a perfect example of why it is helpful to have a trusted counsel working with your business. I've done this in several cases and believe it has saved the company a lot of money on their legal budget. I then act as the liaison with special counsel for any matter that I can't handle myself and monitor those billings. This is a good way of using "outhouse" counsel to control legal costs.
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