Baker McKenzie offices in Washington, D.C. Photo: Diego M. Radzinschi/ALM Baker McKenzie, Ex-Client Embroiled In Litigation Over Retainer Agreement Breach
California-based workplace services company SBM Management Services alleges that the global firm failed to adhere to a requirement in which it would provide updates when expended attorneys' fees and costs reached $15,000 intervals.
November 05, 2024 at 03:57 PM
3 minute read
What You Need to Know
- SBM Management Services is suing Baker McKenzie over allegations that the firm, while performing defense work for SBM in underlying litigation, failed to adhere to billing reporting thresholds.
- SBM claims that Baker McKenzie was required to inform SBM when fees and costs reached intervals of $15,000, but failed to do so.
- Baker McKenzie turned around and filed a countersuit over allegations of unjust enrichment, claiming SBM still owes outstanding money for the law firm's defense work.
A breach of contract lawsuit that is playing out in California state court raises issues about billing practices and disclosures in Big Law, as Baker McKenzie stands accused of breaching retainer agreement by not notifying its client when fees and costs reached a certain threshold.
California-based workplace services company SBM Management Services alleges that the global giant violated a provision in a retainer agreement that required SBM to be alerted when the firm neared "specific spending milestones," in a suit that was refiled Monday in San Francisco County Superior Court after being initiated in Sacramento in February.
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