Ford accuses law firms of fraudulent overbilling, including a 57-1/2 hour workday
By Jonathan Stempel
(Reuters) - Ford sued several California lawyers and law firms on Wednesday, accusing them of fraudulently inflating their legal fees under that state's Lemon Law, including one instance where a lawyer allegedly billed 57-1/2 hours in one day.
In a complaint filed in Los Angeles federal court against nine defendants, Ford called the alleged improper billings a "magical mystery tour" of bogus work and time entries, spread across thousands of cases against several automakers so they would go undetected.
Ford said the law firm Knight Law Group anchored the scheme, regularly bringing in other law firms to overstaff cases, sometimes with 10 to 15 lawyers.
The Dearborn, Michigan-based automaker said it lost at least $100 million from the scheme over five years. It is seeking at least $300 million in damages for alleged violations of the federal anti-racketeering law known as RICO.
Requests for comment on behalf of the defendants were not immediately returned.
The complaint identified "numerous" alleged instances of lawyers billing more than 24 hours in a single day.
Ford said the 57-1/2 hours that Knight partner Amy Morse allegedly billed on November 30, 2016 included 12.9 hours on "requests for admission," where parties ask opponents to admit that facts are true or documents are authentic.
The automaker said another lawyer allegedly billed 29 hours to prepare for, travel to and attend two trials on the same day in Los Angeles and near San Francisco, about 400 miles apart.
California's Lemon Law, the Song-Beverly Consumer Warranty Act, lets lawyers collect legal fees based on reasonably incurred time spent representing vehicle owners.
The case is Ford Motor Co v Knight Law Group LLP et al, U.S. District Court, Central District of California, No. 25-04550.
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