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XMLAW > Blogs > Rob Saccone > Posts > New York firm sued for "secretly profiting off legal research fees by overcharging clients"
XMLAW President and CEO
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5/14/2009
"A California plaintiffs attorney has filed a lawsuit against a New York-based law firm on behalf of a former client of the firm for what she claims is a hidden but widespread practice within the legal profession: law firms secretly profiting off legal research fees by overcharging clients."
Patricia Meyer, of San Diego's Patricia Meyer & Associates, alleges that Chadbourne (and many other law firms) are paying flat fees for research services such as Westlaw and LexisNexis, yet pass these costs on to clients by the hour thus profiting unfairly.
In this economy law firms are placing increased focus on client retention. It seems counter-intuitive to over-bill for services such as these while clients are trying to reduce legal spend, not get "nickled and dimed". Yet I can see how such a disconnect could happen within a firm's billing processes without necessarily implying it's being done intentionally.
A lesson here? Better management of information and increased transparency for clients into billing details could no doubt prevent some of this, and at the same time can help firms know what's happening with their clients. Yet another compelling reason to invest in a practical information management strategy.
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