The law firm DLA Piper has settled a fee dispute with one of its clients, resolving a case that highlighted lawyers’ e-mails that discussed overbilling the client, in one instance using the phrase “churn that bill, baby!” to describe their work.
The e-mails surfaced in dueling lawsuits between DLA Piper and Adam H. Victor, an energy industry executive. After DLA Piper sued Mr. Victor for $675,000 in unpaid legal bills, Mr. Victor filed a counterclaim, accusing the law firm of a “sweeping practice of overbilling” and demanding $22.5 million in punitive damages.
On Tuesday, the parties resolved the matter, according to Larry Hutcher, a lawyer for Mr. Victor. Mr. Hutcher declined to discuss the terms of the settlement, citing confidentiality provisions in the agreement. It is unclear whether DLA Piper dropped its claim or paid Mr. Victor damages.
Mr. Victor had retained DLA Piper in April 2010 to prepare a bankruptcy filing for one of his companies. Mr. Victor ultimately refused to pay some of the bill, and the law firm sued him for nonpayment.
During pretrial document discovery as part of the litigation, internal DLA Piper e-mails surfaced that suggested the firm had a lax attitude about the size of Mr. Victor’s bill.
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