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Taylor English Seeks $2.8M in Fees From Former Client

December 15, 2021 | Posted in : Attorney-Client Relationship, Expenses / Costs, Fee Agreement, Fee Dispute, Fee Dispute Litigation / ADR, Fee Retainer, Hourly Rates, Interest on Fees, Unpaid Fees

A recent Law360 story by Emily Sides, “Taylor English Seeks $2.8M in Fees From Ex-Client,” reports that a Texas-based oil and gas corporation owes Taylor English Duma LLP over $2.8 million for nearly 3,000 unpaid billable hours, expenses and interest, according to a suit the law firm filed in Georgia state court.  Frontera Resources Corp. reneged on its February 2019 retainer agreement with the Atlanta-headquartered law firm, according to the six-page complaint by Taylor English.  In addition to the over $2.1 million for unpaid legal work and expenses and $721,655 in interest, Taylor English wants its ex-client to reimburse the firm's attorney fees for having to pursue the payment litigation.

The complaint alleges one count of breach of contract, one count of unjust enrichment and one count of account stated against Houston-based Frontera Resources.  As part of alleging account stated, Taylor English said that the total sum is the correct amount that Frontera Resources owes. Taylor English referred to a state law that states that a defendant in an action must either deny the debt or reply with how much is truly owed to the plaintiff.  According to Taylor English, the corporation had retained the firm and agreed to pay up to $795 an hour for legal services.

"At [Taylor English's] expense, [Frontera Resources] has been unjustly enriched through the conduct described above, and [Taylor English] is entitled to be compensated for the benefit that [Frontera Resources] has enjoyed and will enjoy as a result of its receipt of the services provided to it under the engagement agreement," Taylor English said in its complaint.  In a two-page letter dated Feb. 8, 2019, Bryce D. Linsenmayer of Taylor English thanked Levan Bakhutashvili of Frontera Resources for agreeing to retain the firm.  Linsenmayer outlined terms of their agreement, including how Frontera was responsible for paying for any legal services provided and for any interest accrued for an unpaid balance.

"Our firm customarily asks for a retainer at the outset for a new client engagement but we have agreed to forgo a retainer at this time," Linsenmayer said in the letter.  "In addition to our fees, you will be responsible for expenses in connection with this engagement, including travel, filing fees, courts costs, postage, online research fees and governmental filing fees, if necessary," Linsenmayer said in the letter.  "You may terminate this agreement with us at any time, but we are entitled to the full amount of fees earned."