Overbilling Gone Wild: Paying the (DLA) Piper

Can you believe the emails that went around internally at DLA Piper about this client's legal bill? Check them out -- along with news of lateral partner moves.

DLA PIPER — MEMORANDUM — OVERBILLING ALLEGATIONS

As many of you know, The New York Times published an article today that focuses on inappropriate emails written by three former lawyers of the firm, referencing improper billing practices.

The actions described in this story did not happen. These emails reflect an unfortunate attempt at humor by three former lawyers of the firm, but did not result in overbilling to the client. It is important to emphasize that the client was not overbilled for any service, but instead was billed in an amount consistent with an understanding reached with the client relating to the amount of fees to be incurred in connection with the services rendered by the lawyers involved in the matter. In fact, by virtue of being a plaintiff in a collection proceeding, it was anticipated that DLA Piper’s services and bills would be reviewed in a judicial process and by a trier of fact for reasonableness and accuracy, and we continue to believe that the DLA Piper fees subject to our collection proceeding will be determined to be appropriate and fair. As such, it is unfortunate that the unprofessional behavior of these lawyers by writing those emails has distracted attention away from the fact that a client refused to pay his bills, and is now being exploited by a party in litigation for their own advantage.

We have no doubt that many of you will be engaged in a conversation with existing and/or potential clients about the inappropriate email humor and we believe it important to convey the following points:

– The emails were in fact an offensive and inexcusable effort at humor, but in no way reflect actual excessive billing. Instead, the reality of the matter is that the amount of fees billed by DLA Piper are consistent with the work performed.

– DLA Piper as a firm has always adhered to the highest level of ethics and integrity in all of its work, including billing practices. We take great pride in being recognized repeatedly by clients as providing the highest level of quality and cost-efficient service.

– As you know, our bills and billing practices undergo the most sophisticated reviews and audits by clients who employ such techniques as a standard practice in connection with outside counsel billings.

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In closing, while we will make no effort to defend the foolish emails generated by the lawyers involved in this matter, we will defend vigorously the firm’s track record of delivering high-quality legal services at a fair price, including the reasonable fees generated in the matter in question. Thank you for your continued support.

Roger, Jay, Mike and Stasia

Ed. note: Roger Meltzer and Jay Rains are the firm’s co-chairmen for the Americas, and Michael Poulos and Anastasia Kelly are co-managing partners for the Americas.

Suit Offers a Peek at the Practice of Inflating a Legal Bill [DealBook / New York Times via Morning Docket]
DLA Piper Emails Reveal Firm Overbilled, Former Client Says [Am Law Daily]
After Year at DLA, Energy Group Returns to Hogan Lovells [Am Law Daily]
Energy partners bounce back to Hogan Lovells from DLA Piper [The BLT: The Blog of Legal Times]
‘Churn that bill, baby!’ email surfaces in fee dispute with DLA Piper [ABA Journal]

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