Credit: Modvector/Shutterstock.com Law Firms Are Suing Ex-Clients More Frequently, Unwilling to Leave 6-Figure Legal Fees on Table
As firms pay closer attention to their margins, so is fee litigation. In one example, a firm is fighting in New York state court to recoup more than $460,000 in arbitration fees from a former client.
July 26, 2022 at 12:30 AM
6 minute read
The original version of this story was published on The American Lawyer
Despite the hazards of suing a past client for unpaid legal fees, these lawsuits are on the rise as firms are increasingly unwilling to let crucial six-figure payments slide, according to several attorneys who regularly advise other lawyers.
Realization rates in the legal industry trended upward in 2021, an indication to malpractice attorneys that law firms and their clients are finding new ways to ensure proper compensation for legal services. However, litigation by law firms to recoup allegedly unpaid legal fees has increased in recent years, and the amount of money at stake is growing too, as law firms pay closer attention to their margins.
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