In October 2024, a client came to us after being charged a staggering $262,954.87 by their commercial lawyer. They had already paid $147,138.39, leaving a hefty outstanding balance of $115,816.48. Concerned about the excessive fees, they sought our help to challenge the charges.
Upon reviewing the invoices, we identified multiple issues, including insufficiently detailed billing, duplicate charges for attendances, and internal management costs that should not have been passed on to the client. Determined to reach a fair resolution, we sent a Calderbank letter to the former lawyer, offering to settle the matter for $200,000, based on which our client would have to pay the lawyer an additional $52,861.61.
The former lawyer showed interest in settling and countered with an offer of $95,000. However, our client wasn’t satisfied and wanted to push for a more reasonable outcome. We went back with a final offer of $67,000 - and the lawyer accepted!
In the end, both parties agreed that $214,138.39 was a fair and reasonable amount, resulting in an 18.6% reduction in the lawyer’s fees. This was a huge win for our client, resulting in savings of $48,816.48, who was thrilled with the outcome!