News & Press: ACEDS News

Bill Padding Leads to 90% Fee Haircut

Tuesday, March 14, 2017   (0 Comments)
Posted by: Mary Mack
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Sprint-Nextel's antitrust case from 2005 is in the news with a fee reduction of a whopping 90%.

Alexander Silow, a contract lawyer for the plaintiffs, billed almost 7000 hours reviewing almost 50,000 hours, accounting for $1.5 m, a quarter of the requested fees.  The judge in the case, Judge Vano, reduced the proposed legal fees for plaintiffs’ attorneys from $4.25 million to $450,000.

According to the WSJ, "Plaintiffs’ firms bill for work done by contract attorneys like Mr. Silow at hourly rates of $300 or more when they submit their fee requests, but they typically pay the attorneys $20 to $40, said Lester Brickman, an emeritus professor at Benjamin N. Cardozo School of Law in New York who has written about bill padding. Mr. Brickman said it is common for firms to staff cases with contract attorneys and direct them to review thousands of documents to run up the fees."

While the settlement was approved in November 2016, the case is back in the news as it was revealed that a disbarred attorney's fees were included in the fee request.

Read more in the WSJ article (Registration required)

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