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Law Firm Sues Former Client Over Legal Fees

January 25, 2010 | Posted in : Contingency Fees / POF, Expenses / Costs, Fee Agreement, Fee Dispute, Fee Dispute Litigation / ADR, Unpaid Fees


A recent article, "Chicago Firm Sues Client Over $747,500 in Fees" reports that Chicago-based Freeborn & Peters has sued its former client, Vehicle Safety & Compliance LLC of Memphis to collect $747,515 in unpaid legal fees plus interest and the cost of bringing the lawsuit. Freeborn & Peters alleges that it worked out agreements in December 2008 and January and March 2009 with the client for payment of the fees, but the client still fell short after making good on a portion of the charges.

The article reports, "The fees owed to Freeborn & Peters stem from defending Vehicle Safety and the related entities in a 2008 lawsuit brought in the Chicago federal court by DigaComm LLC, which was seeking "not less than $200 million" in damages.  Brad Larschan, chief executive of Vehicle Safety, said his transportation safety technology company hadn't yet been served with the lawsuit, but the last he heard his company had paid between 70% and 75% of the fees and the two parties were in discussion to resolve the matter."