by Judge Dismisses Ford’s Lawsuit Against California Law Firms
A federal judge in California has dismissed Ford’s high-profile lawsuit against a number of law firms, which the automaker had accused of inflating fees and abusing the local “Lemon Law.”
The Essence of the Allegations
The automaker alleged that these firms engaged in a fraudulent billing scheme, violating the federal RICO law on combating organized crime. The case drew attention both due to its legal implications and the scale of Ford’s accusations against the lawyers.
In the lawsuit filed in May, Ford claimed that approximately half of the submitted bills for legal services were falsified or significantly inflated. The company believed that the firms took advantage of its legal obligation, established by law, to cover court costs in “lemon” cases, turning a consumer protection mechanism into a source of profit.
Inflated Billable Hours
Among the most striking allegations, Ford cited data from the timesheets of Knight Law Group partner Amy Morse. The company claimed that she billed for over 20 hours of work per day in at least 66 instances. Moreover, Ford stated that she billed over 24 hours on 34 separate days, and in November 2016 recorded an incredible 57.5 billable hours in a single day. These figures became Ford’s central argument that the billing practice was not only inflated but intentionally deceptive.
Court Ruling and Legal Protection
However, earlier this week, U.S. District Judge Michelle Williams Court ruled that Knight Law Group and other defendants are protected by the Noerr-Pennington immunity. This legal doctrine prohibits lawsuits alleging violations of antitrust law against parties who petition the government (e.g., file lawsuits in court). The judge also found that Ford’s allegations under the RICO law were insufficiently substantiated, causing the automaker’s lawsuit to lose its legal footing.
Next Steps and Reaction
Ford now has until December 22 to amend and refile the lawsuit if the company plans to continue the case. The “Blue Oval” had accused Knight Law Group, The Altman Law Group, and Wirtz Law, as well as a number of individual lawyers, of defrauding not only Ford but also other automakers through similar schemes. According to Ford, Knight Law Group subsequently began withdrawing some payment demands to “cover its tracks and disguise its fraudulent activity.”
In a statement to Reuters, Ford’s attorney Douglas Lampe said he was disappointed by the dismissal of the lawsuit but added that the court
“did not find that Ford was wrong about the facts or that the ‘Lemon Law’ attorneys did not commit fraud”
.
This case highlights the complex interaction between big business, consumer protection legislation, and the legal profession. Despite the current court decision, the question of the line between aggressive client advocacy and potential abuse of the system is likely to remain a subject of debate. Similar cases may influence future legislative initiatives aimed at clarifying billing procedures and covering court costs in cases where one party is obligated to pay the other party’s expenses.
