Big News Network.com
26 May 2025, 14:06 GMT+10
DEARBORN, Michigan: Ford Motor Company has filed a lawsuit against several California lawyers and law firms, accusing them of cheating the company out of millions of dollars by inflating their legal fees under the state's Lemon Law, including one lawyer allegedly billing an impossible 57.5 hours in a single day.
The complaint was filed this week in federal court in Los Angeles. It targets nine defendants and calls the alleged overbilling a "magical mystery tour" of false work records and time entries. Ford claims the lawyers spread these false billings across thousands of cases involving not just Ford but also other carmakers in hopes of avoiding detection.
At the center of the lawsuit is the Knight Law Group, a firm that Ford says led the scheme. According to Ford, Knight regularly brought in other law firms and stacked cases with 10 to 15 lawyers to artificially increase the legal hours claimed.
Ford, based in Dearborn, Michigan, says it lost at least US$100 million over five years due to these practices. It is now seeking at least $300 million in damages, citing violations of the federal anti-racketeering law known as RICO (Racketeer Influenced and Corrupt Organizations Act).
The complaint gives several examples of what Ford calls outrageous billing. One of the most striking claims involves Knight Law Group partner Amy Morse, who allegedly billed 57.5 hours in a single day—November 30, 2016—including nearly 13 hours just working on "requests for admission," which are documents used to confirm facts in a legal case.
Another lawyer reportedly billed 29 hours in one day to prepare for, travel to, and attend two separate trials—one in Los Angeles and the other near San Francisco, roughly 400 miles apart. Ford says this would have been physically impossible.
California's Lemon Law, officially called the Song-Beverly Consumer Warranty Act, allows consumers to seek legal help when they purchase faulty vehicles. It also allows lawyers to be paid for the time they reasonably spend on such cases. Ford claims the lawyers named in the suit abused this system by charging for work that was never done or inflated beyond reason.
So far, the lawyers and firms being sued have not responded to the lawsuit.
The case is Ford Motor Co v Knight Law Group LLP et al, U.S. District Court, Central District of California, No. 25-04550.
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