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Akerman Sues Former Client for $3M in Unpaid Fees

March 26, 2024 | Posted in : Expenses / Costs, Fee Dispute, Fee Dispute Litigation / ADR, Hours Billled, Interest on Fees, Intra-Law Firm Fee Dispute, Law Firm Economics, Law Firm Management, Unpaid Fees

A recent Law.com story by Alexander Lugo, “Akerman Sues Former Client for Almost $3 Million in Unpaid Fees”, reports that Akerman is suing a former client alleging that he has a total overdue bill of more than $2.8 million.

The client, Blaine Iler, was convicted of extortion, conspiracy and bribery in June along with two other executives of a food servicer for bribing a New York City Department of Education official.  Former Akerman partner Bradley Henry was originally lead counsel on the case, but in February he moved to Blank Rome and took Iler with him as a client, according to the lawsuit filed in New York state court.

Before Henry moved to Blank Rome, Iler allegedly accumulated just under $2.8 million in legal fees along with another $67,000 in other costs to Akerman.  The firm is also seeking interest on those fees, according to the lawsuit.  A total of 16 Akerman attorneys allegedly put in almost 6,000 hours on Iler’s defense, which culminated in a four-week jury trial, according to the complaint.

Akerman claims that Iler has acknowledged his debt to the firm in the past, most recently on a February call with Henry, Akerman litigation practice chair Lawrence Rochefort and Akerman COO David Ristaino, according to the court documents.  Around the time of that phone call, the judge on the case out of New York denied a post-trial motion for an acquittal or a new trial after being convicted in June.

This lawsuit follows a trend of law firms seeking to leave no legal fees on the table and using litigation as a way of obtaining those fees.  That trend has led to higher realization fees for firms generally.

However, Akerman’s $2.8 million case against Iler is on the high end of the spectrum when it comes to fee disputes.  New York-based litigation firm Kasowitz Benson Torres sued former clients for a total sum of more than $4.5 million during all of 2023.  Although litigation may be an effective way to collect unpaid fees, especially when a client is disputing those fees, law firms don’t want to seem too trigger-happy toward former clients so lawsuits tend to be a last resort.