The publishers gain healthy profits from selling legal research and content to law firms.. now it appears some firms are attempting to do the same to their clients and netting a lot of money in the process
The ABA journal USA reports that US firm Chadbourne have attempted to charge one client 4 times as much as it cost them to buy the legal research material from the legal database suppliers
Chadbourne Accused of Overbilling for Research; Other Claims in Pipeline
May 8,
An unjust enrichment lawsuit claims Chadbourne & Parke billed a client $20,000 for online legal research that cost the law firm only $5,000.
San Diego lawyer Patricia Meyer, who represents the Texas businessman suing Chadbourne, tells the National Law Journal that at least a dozen other law firms are also overbilling for research, and more lawsuits are in the pipeline.
Meyer alleges that Chadbourne and several other law firms are paying flat fees to legal research companies such as Westlaw and LexisNexis, but billing clients at hourly rates, the story says. Meyer claims it is a violation of California ethics rules to charge the higher amount without disclosing the arrangement to clients.
"This appears to be more widespread than you would think," Meyer told the publication. "Basically what we’re finding is that certain law firms are using Westlaw and Lexis as profit centers. … Quite candidly, what we’re finding is the clients really have no idea that this is going on.”
The plaintiff in the Chadbourne suit, J. Virgil Waggoner, alleges unfair business practices, unjust enrichment, fraud and deceit.
Full report http://www.abajournal.com/news/chadbourne_accused_of_overbilling_for_research_other_claims_in_pipeline/
It is worth reading the comments to see how firms percieve the practice.. we’d almost support it if the fees went straight back into the library budget .. but we imagine most of the $’s earnt will go into the particular practice division’s figures
