Court Affirms $1M Attorney Fee Award: A Cautionary Tale of Bad Faith Conduct by Former Clients

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The court found that Grunow and Harbor Course had failed to dispute the amount billed within 30 days as required by the fee agreement, and that they couldn’t now question the reasonableness of the fees. The panel also rejected their argument that the firm violated its ethical obligation to charge “fair and reasonable fees” by billing for multiple attorneys to attend depositions and meetings and having partners perform tasks that could’ve been performed by paralegals.

This case highlights the importance of clients carefully reviewing their fee agreements and raising any objections within the time frame specified in the agreement. It also serves as a reminder to attorneys to ensure that their fee agreements clearly outline the process for disputing fees and to document their billing practices to defend against any potential challenges to their fees.