The huge law firm, Reed Smith, is facing suit over fees paid by one of its former not-for-profit clients. Law.com reports that the not-for-profit alleges that the high demands on partners to increase profits ultimately led to “excessive” fees in a routine employment discrimination case, originally quoted to be $50,000 but ballooned to reportedly more than $960,000.
Recent litigation brought by the foundation is proceeding on several grounds, including breach of contract, breach of fiduciary duty, fraud and legal negligence. In permitting the case to move forward the judge ruled that the client faithfully paying fees to the law firm did not mean that they could not later complain about their excessive nature. Good news for clients who pay their fees.
According to the court,