Despite the hazards of suing a past client for unpaid legal fees, these lawsuits are on the rise as firms are increasingly unwilling to let crucial six-figure payments slide, according to several attorneys who regularly advise other lawyers.
Realization rates in the legal industry trended upward in 2021, an indication to malpractice attorneys that law firms and their clients are finding new ways to ensure proper compensation for legal services. However, litigation by law firms to recoup allegedly unpaid legal fees has increased in recent years, and the amount of money at stake is growing too, as law firms pay closer attention to their margins.
