Labaton Sucharow

Real Life Imitates Fiction, In This Case, “The Firm”

/ Jack Marshall / 4 Comments

Remember how, in the film adaptation of John Grisham’s “The Firm,” the young lawyer Mitch McDeere (Tom Cruise)who is  trapped in a mob-owned law firm wiggles out of his dilemma in part by proving that the firm’s lawyers were routinely over-billing clients?

Well, the Boston-based Thornton Law Firm and the Labaton Sucharow law firm in New York were caught inflating their billings on a similar scale.

Judge Mark L. Wolf concluded that the two firms double-billed  for their attorneys’ work on a class-action lawsuit involving State Street Bank, and even billed for the work of other attorneys not employed at either firm. Thornton’s managing partner, Garrett Bradley,  listed his brother as an attorney on the case and charged $200,000 for his time even though Michael Bradley was barely involved. Uncovering this scandal was another triumph of the Boston Globe Spotlight Team, the investigative reporting division that uncovered Boston’s predator priest cover-up in 2002. Continue reading →

Oh, Great: 21% Of Lawyers Are Stealing From Their Clients.

/ Jack Marshall / 26 Comments

This should be a shock, but it isn’t. When the screenwriters for the film adaptation of “The Firm” changed the ending to focus on the fact that the mob’s law firm was over-billing clients, lots of lawyers and legal ethics specialists squirmed. Widespread over-billing in the legal profession has been a scandal waiting to break for decades.

The ABA journal reveals that a recent study by  CEB Inc. and Wolters Kluwer NV’s ELM Solutions, companies that work with corporate legal departments to manage their budgets, examined legal invoices from about 100 companies, and found that 21% of lawyers “upbilled” for their time in 2015. Upbilling is the practice of rounding up legal hours hours worked to the next hour or half hour. This could raise the annual legal bill for a partner billing 2,000 hours a year by about $29,000. Spread over all the clients and all the lawyers charging by the hour, the 21% figure translates into millions of dollars taken by fraud, and maybe billions, every year. You can read summaries of the reports  here and here. Continue reading →