Nov 24 (Reuters) - A federal judge in Los Angeles on
Monday dismissed Ford's lawsuit accusing several
California lawyers and law firms of fraudulently inflating their
legal fees under the state's Lemon Law, including allegations
that a single lawyer billed more than 57 hours in one day.
U.S. District Judge Michelle Williams Court ruled that the
Knight Law Group and its co-defendants were protected by a legal
doctrine called Noerr-Pennington immunity, which bars antitrust
claims against parties that are petitioning the government even
if they are advocating for government action that would reduce
competition.
The judge also ruled that Ford's claim under the federal
anti-racketeering law known as RICO was deficient.
"Knight Law will never be deterred by attempts to chill its
advocacy, and it will now go back to doing what it does best:
protecting the American people," said Neal Katyal, a Milbank
partner and former acting U.S. solicitor general who is
representing the Knight Law Group and its lawyers.
A spokesperson for Ford and attorneys for the other defendants,
including the Altman Law Group and Wirtz Law, did not
immediately respond to requests for comment.
Court said she would give Ford another chance to revive its
claims against the defendants, and gave the Dearborn,
Michigan-based automaker until Dec. 22 to re-file its lawsuit.
California's Lemon Law, the Song-Beverly Consumer Warranty
Act, lets lawyers collect legal fees based on reasonably
incurred time spent representing vehicle owners.
Ford accused the defendants of defrauding several carmakers
by submitting false and inflated fee applications and demands,
and alleged that the Knight Law Group's Steve Mikhov was the
"ringleader of this criminal enterprise."
Mikhov, a named defendant in the case, and the Knight Law Group
denied Ford's allegations in a Sept. 12 filing, calling the
lawsuit an effort "to chill and punish its litigation
adversaries - law firms, lawyers, and staff who represent
consumers harmed by Ford's defective vehicles and fraudulent
conduct."
Ford alleged that there were "numerous" alleged instances
of lawyers billing more than 24 hours in a day. One partner at
the Knight Law Group, Amy Morse, billed 57-1/2 hours of work on
one day, the carmaker alleged.
Ford later claimed that the Knight Law Group had begun
withdrawing certain demands for payment as a way to "to cover
their tracks and conceal their fraudulent conduct."
The Knight Law Group said Ford's lawsuit suggested that
Morse "did not know any such time entries were included in fee
petitions." The firm also said that the carmaker's lawsuit was
filled with "with wholly irrelevant (and inaccurate) personal
attacks" on the defendants.
The legal battle attracted several high-profile firms. Ford
was represented by a team of attorneys from Kasowitz, while the
Knight Law Group tapped lawyers from Milbank; Williams &
Connolly; and Pillsbury Winthrop Shaw Pittman.
The case is Ford Motor Co ( F ) v. Knight Law Group LLP, U.S.
District Court for the Central District of California, No.
25-04550.
For Ford: Daniel Saunders, Matthew Manacek, Edward McNally
and Daniel Fetterman of Kasowitz
For Knight Law Group et al: Neal Katyal, Matthew LaRoche of
Milbank; Dane Butswinkas and Zachary Warren of Williams &
Connolly; and Aaron Dyer, and Ronald Cheng of Pillsbury Winthrop
Shaw Pittman
For Amy Morse: Kendall Waters and Pamela Johnston of Foley &
Lardner
For The Altman Law Group and Bryan Altman: Gregor Hensrude
of Klinedinst
For Wirtz Law et al: John Quinn and Matthew Craig of Hecker
Fink