AUS firm which billed $35 million (£26m) for acting in complex arbitrations failed to keep its billionaire client informed of costs – including two increases in hourly rates – a judge has ruled.
In Safra v Wilmer Cutler Pickering Hale and Dorr, Costs Judge Leonard made an order for assessment of WilmerHale’s final bill, stating that he had never seen a case where such a large bill had been backed up with so little information.
According to the judgment, WilmerHale was retained by Alberto Safra to act in a bitter dispute over the estate of his father, Brazilian banker Joseph Safra. The engagement letter quoted hourly fees of up to $1,830. These were increased twice without notice during the retainer, rising to up to $2,095 per hour.
In a 76-page judgment, the judge found that the firm’s invoices contained ‘charges which are so high as to raise concern as to the costs incurred across the board’. One fee earner, he noted charged for 370.7 hours in January 2024. Meanwhile, ‘many of the expenses and disbursements are of a surprising nature,’ including subscriptions to the Westlaw legal database and $11,367.54 for a partner’s travel expenses from New York to London. This included $41.76 for laundry.
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