The Client is Always Right

A contingent fee agreement proved a disappointment for D.C.'s King & King, which sued clients who sought to escape a long-running contract dispute with the federal government. King & King sought $4.8 million in fees it could have earned for a complete recovery and compensation for work performed, arguing that the clients had spoiled the firm’s chance to follow through on work already done and win the case.

The U.S. Court of Appeals for the D.C Circuit last week dismissed the firm's case, noting that the clients had good reason to back off: They had disputed for 11 years without success, and they were also defending against criminal and civil fraud cases.

“A client may discharge his attorney, with or without cause, and such a discharge will not constitute a breach of any agreement between them,” Judge Janice Rogers Brown wrote. “This rule is admittedly harsh to attorneys, especially to those who provide services under contingent-fee agreements, for they bear a substantial risk.”