A lawsuit has been filed against a firm in California for allegedly overcharging a client for online legal research costs. Waggoner v. Chadbourne & Parke, No. BC408693 (Los Angeles Co., Calif., Super. Ct.). The counsel for the plaintiff alleges that the firm pays a flat fee for online serves that should have resulted in billing at a significantly reduced amount rather than the $20,000 that was included in the billing. While cost-plus billing may be acceptable, the plaintiff, in this case, claims that it is a violation of California ethics rules to charge the higher amount because the firm did not disclose the arrangement.
For additional detail see the National Law Journal article on the case.
Hat tip to Law Librarian Blog.
