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Quinn Emanuel Fee Dispute Case Moves Forward

June 18, 2010 | Posted in : Ethics & Professional Responsibility, Expenses / Costs, Fee Dispute, Fee Dispute Litigation / ADR

A recent story in The American Lawyer, “Judge Refuses to Toss Fraud Charges Against Quinn Emanuel Over Legal Fees” reports that former Quinn Emanuel client Tele Atlas sued the law firm for fraud, breach of fiduciary duty, overcharging, and legal malpractice in February 2009 alleging that Quinn Emanuel underestimated the costs it would incur in an antitrust case against rival Navteq.  Tele Atlas claims Quinn Emanuel incorrectly advised the company that it could recover its legal fees and costs, and that its estimated legal bill would come in at $4 to $5 million.  In the end, Quinn Emanuel racked up a $15 million tab.

San Francisco Superior Court judge Peter Busch denied most of Quinn Emanuel’s motion for summary judgment, concluding that there was evidence that the firm partner David Eisman had told Tele Atlas that the legal fees were recoverable.  The judge brushed aside Quinn Emanuel partner Terry Wit’s argument that the firm had told Tele Atlas that its damages claims were weak.  “Damages and attorneys’ fees are different,” Judge Busch reportedly said.  According to court records, Quinn Emanuel claims that Tele Atlas still owes the firm $2 million.  “The dispute is really over the outstanding bills” said Quinn Emanuel partner Christopher Tayback.