Many laypersons (note use of politically correct term “layPERSONS”) have complained that lawyer’s bills are outrageous. Well, now we have a federal judge who agrees with them. (AstraZeneca AB et al. v. Dr. Reddy’s Laboratories, Ltd. et al.)
AstraZeneca sued Dr. Reddy’s for patent infringement. AstraZeneca lost and was ordered to pay Dr. Reddy’s legal bills. Undaunted, AstraZeneca appealed – and lost again.
We now pick up this fascinating story as Judge McMahon, of the United States District Court for the Southern District of New York, comments on the fee award documentation submitted by Dr. Reddy’s counsel, the Budd Larner firm. “When I opened the fee award documentation sent by defendant’s counsel, I almost fell off my chair. The fee request is outrageous on its face … the application is so out of line with reality that I would reject it out of hand – except for the fact that, as I have already held, plaintiff’s maintenance of this utterly meritless lawsuit demands an award of fees.”
How did Dr. Reddy’s legal fees come to be so criticized? The Court found that Budd Larner’s top hourly rates, which never exceeded $395, were “perfectly reasonable.” The key to the gargantuan bill lay in the number of people who billed their hours and the number of hours they billed.
Judge McMahon found that “[t]he patent was so simple that even I readily understood it.” Nevertheless, ten – yes, 10 – Budd Larner PARTNERS labored on the defense, together with an unspecified number of associates. This, in a case where, “[w]e did very little discovery” and only one deposition was taken.
“The idea that a half million dollars was expended on the appeal alone is mind-boggling. So is the idea that almost $90,000 was spent preparing the fee award motion and [the fee accounting].”
Really hitting her stride, Judge McMahon continued, “I appreciate that Dr. Reddy’s has been put to tremendous expense without necessity. But who could have known that it was victimized twice – once by AstraZeneca’s maintaining a meritless lawsuit, and once by its own lawyer’s overstaffing and needlessly running up the clock?”
In the end, Judge McMahon awarded Dr. Reddy’s a legal fee of $500,000. We would hazard a guess that the foregoing resulted in some heated discussions between Dr. Reddy’s management and the folks at Budd Larner.
THE LESSON TO BE LEARNED: If you’re paying your attorneys by the hour, keep a close eye on their billing statements – this could happen to you.
Nevertheless, ten – yes,
Nevertheless, ten – yes, 10 – Budd Larner PARTNERS labored on the defense, together with an unspecified number of associates. This, in a case where, “[w]e did very little discovery” and only one deposition was taken. pass4sure security+ | pass4sure ccnp | pass4sure cissp | pass4sure a+ This is one case that demonstrates how your own greed -- or, perhaps, incompetence -- can come back to bite you. And, yes, it would most certainly have been entertaining to have been a fly on the wall when Dr. Reddy's undoubtedly gave Budd Larner a much-deserved dressing-down.
More attorneys will eventually have to learn that it does not work in their own best interests to unnecessarily run up astronomical legal bills. This is one case that demonstrates how your own greed -- or, perhaps, incompetence -- can come back to bite you. And, yes, it would most certainly have been entertaining to have been a fly on the wall when Dr. Reddy's undoubtedly gave Budd Larner a much-deserved dressing-down.