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Suits for Unpaid Legal Fees in Top 10 for Stupidity, Lawyer Says Posted Sep 30, 2009, 07:06 am CDT By Debra Cassens Weiss A lawyer who represents a company sued for unpaid legal fees says such claims aren't a good idea. Lawyer Warren Trazenfeld represents Whitney Information Network, sued by the Florida law firm Rothstein Rosenfeldt Adler, allegedly for failing to pay more than $400,000 in legal bills, the Daily Business Review reports. Trazenfeld told the publication he is planning to file a malpractice counterclaim. Suing a client is "one of the top 10 stupidest things a lawyer can do," he said. The story asserts the case is one of a growing number of instances in which law firms are suing clients for unpaid bills. "Most clients think the best defense is a good offense, and there's no better offense than a counterclaim for legal malpractice," Trazenfeld told the Daily Business Review. Another law firm that recently filed suit for unpaid fees is Ruden McClosky, the story says. Last week the firm filed suit claiming nearly $40,000 in unpaid legal bills by the father of retired pro quarterback Bernie Kosar. Ruden managing director Carl Schuster acknowledged that some malpractice claims have merit, but said clients often file them as a settlement tool in fee cases. "They obviously haven't paid the bill so that's not a defense, so they have to think up a defense," he told the Daily Business Review.

[Uh, also in the top 10 would be allowing a client to run up a $400,000 tab in these troubled times.] Suits for Unpaid Legal Fees in Top 10 for Stupidity, Lawyer Says Posted Sep 30, 2009, 07:06 am CDT By Debra Cassens Weiss A lawyer who represents a company sued for unpaid legal fees says such claims aren't a good idea. Lawyer Warren Trazenfeld represents Whitney Information Network, sued by the Florida law firm Rothstein Rosenfeldt Adler, allegedly for failing to pay more than $400,000 in legal bills, the Daily Business Review reports. Trazenfeld told the publication he is planning to file a malpractice counterclaim. Suing a client is "one of the top 10 stupidest things a lawyer can do," he said. The story asserts the case is one of a growing number of instances in which law firms are suing clients for unpaid bills. "Most clients think the best defense is a good offense, and there's no better offense than a counterclaim for legal malpractice," Trazenfeld told the Daily Business Review. Another law firm that recently filed suit for unpaid fees is Ruden McClosky, the story says. Last week the firm filed suit claiming nearly $40,000 in unpaid legal bills by the father of retired pro quarterback Bernie Kosar. Ruden managing director Carl Schuster acknowledged that some malpractice claims have merit, but said clients often file them as a settlement tool in fee cases. "They obviously haven't paid the bill so that's not a defense, so they have to think up a defense," he told the Daily Business Review.

Citigroup GC Has No Sympathy for Law Firms Seeking Premium Fees Posted Sep 28, 2009, 08:52 am CDT By Debra Cassens Weiss The general counsel for Citigroup says his in-house legal department has been battered by the economic downturn, leaving him with little sympathy for law firm arguments for premium fees. General counsel Michael Helfer, a panelist at an event sponsored by Bisnow, said Citigroup's in-house legal department has shrunk by about 300 employees over the last few years, many of them felled by layoffs, according to the Washingtonian's Capital Comment Blog. Compensation for the lawyers who are left has been cut by up to 60 percent. In such an environment, "The amount of sympathy I have for the argument that $1,000 an hour is a reasonable rate ... is nil," Helfer said, according to the blog account. Law firms aiming to please general counsel such as Helfer are agreeing to charge alternative fees. Panelists told of changes. The percentage of revenue from alternative billing is about 10 percent at Arent Fox, about 15 percent to 20 percent at Akin Gump Strauss Hauer & Feld, and about 5 percent to 10 percent at Skadden, Arps, Slate, Meagher & Flom. Even as law firms move to alternative fees, they hope to maintain partner profits that can average more than $1 million a partner. Akin Gump chairman Bruce McLean acknowledged it won't be easy, the blog says. "It's a big challenge," said McLean. "We're not so good at that yet."

[The new buzzword shall be "alternative fees" ... uh, I think "alternative" here means "lower".] Citigroup GC Has No Sympathy for Law Firms Seeking Premium Fees Posted Sep 28, 2009, 08:52 am CDT By Debra Cassens Weiss The general counsel for Citigroup says his in-house legal department has been battered by the economic downturn, leaving him with little sympathy for law firm arguments for premium fees. General counsel Michael Helfer, a panelist at an event sponsored by Bisnow, said Citigroup's in-house legal department has shrunk by about 300 employees over the last few years, many of them felled by layoffs, according to the Washingtonian's Capital Comment Blog. Compensation for the lawyers who are left has been cut by up to 60 percent. In such an environment, "The amount of sympathy I have for the argument that $1,000 an hour is a reasonable rate ... is nil," Helfer said, according to the blog account. Law firms aiming to please general counsel such as Helfer are agreeing to charge alternative fees. Panelists told of changes. The percentage of revenue from alternative billing is about 10 percent at Arent Fox, about 15 percent to 20 percent at Akin Gump Strauss Hauer & Feld, and about 5 percent to 10 percent at Skadden, Arps, Slate, Meagher & Flom. Even as law firms move to alternative fees, they hope to maintain partner profits that can average more than $1 million a partner. Akin Gump chairman Bruce McLean acknowledged it won't be easy, the blog says. "It's a big challenge," said McLean. "We're not so good at that yet."