Ex-Duane Morris Client Claims Fuzzy Billing, Wants $2.3M in Legal Bills Voided
Updated: A former corporate client has filed a lawsuit against Duane Morris that takes the law firm to task for alleged block billing entries and a purported agreement allowing the firm to restrict the client’s business operations.
The $100 million suit was filed Sept. 15 by U.S. Precious Metals against Duane Morris; the firm’s Balitmore-based partner Keli Isaacson Whitlock; and U.S. Precious Metal’s former CEO, Michael Kugler, according to CityBizList Philadelphia. The allegations are detailed in a filing with the Securities and Exchange Commission.
The suit seeks a declaratory judgment that Duane Morris’ invoices for $2.3 million in unpaid legal fees and expenses are unenforceable due to “repetitive ‘block’ entries that do not provide time-entry details or identify specific tasks performed,” the SEC filing says.
The suit also seeks a declaration that an alleged lien pledged to Duane Morris to secure its fees is unenforceable, the SEC filing says. The January lien purported to grant Duane Morris a security interest in U.S. Precious Metals’ mining operations in Mexico. According to the filing, the agreement also “purported to impose restrictions on the company’s ability to conduct its business without the prior written consent of Duane Morris.”
Duane Morris general counsel Michael Silverman issued this statement to the ABA Journal: “The firm generally refrains from commenting specifically in a litigation situation, and this matter is currently pending. However, we have always dealt with U.S. Precious Metals professionally and ethically, and we intend not only to prove that, but to collect the outstanding legal fees we are owed.”
Updated at 11 a.m. to include Silverman’s statement.
