Ford has filed a federal lawsuit accusing several California law firms of fraudulently inflating legal fees in thousands of Lemon Law cases, including billing records that defy physical possibility, such as one attorney allegedly charging for 57.5 hours of work in a single day.
The complaint, filed Wednesday in U.S. District Court for the Central District of California, names nine defendants, including Knight Law Group, which Ford says coordinated a “magical mystery tour” of improper billing practices. The Dearborn-based automaker is seeking at least $300 million in damages, citing violations of the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
Ford alleges the scheme spanned five years and cost the company at least $100 million. The firm says the defendants overloaded cases with as many as 10 to 15 attorneys, submitting thousands of inflated time entries that were difficult to track across multiple cases and manufacturers.
According to the claim, one Knight Law Group partner allegedly billed 57.5 hours on November 30, 2016, 12.9 of which were for reviewing requests for admission. In another instance, Ford claims an attorney logged 29 hours in a single day for attending two trials nearly 400 miles apart, in Los Angeles and near San Francisco.
California’s Lemon Law, the Song-Beverly Consumer Warranty Act, allows attorneys to collect fees based on the reasonable time spent representing clients. Ford contends these alleged practices significantly abused that provision.
