A lawsuit has been filed accusing a law firm of fraudulent billing practices and unfair competition. The complaint was lodged by the Stanford Education Foundation, LLC, Kam Hong Lui, and June Lu against Horner Law Group, P.C., on November 7, 2024, in the Superior Court of California, County of Santa Clara.
The plaintiffs allege that Horner Law Group engaged in fraudulent billing practices while representing them in legal matters related to their pre-school academy. They claim that the law firm used block billing to obscure the actual time spent on tasks and charged for services not rendered. According to the complaint, "HLG routinely billed at the $275 an hour paralegal rate for secretarial/ministerial tasks which is unconscionable." The plaintiffs also accuse HLG of billing for unrelated matters and inflating bills through vague entries such as "file review."
The case stems from a dispute involving a fraudulent lease agreement with Alliance One Investment, LLC. The plaintiffs assert they were defrauded out of significant sums due to overpayments on rent and other charges. They claim HLG failed to adequately represent them in this matter and instead focused on maximizing their fees through unethical billing practices.
In addition to seeking restitution for over $163,800 in allegedly unjust fees paid to HLG, the plaintiffs are requesting injunctive relief to prevent similar conduct by the law firm in the future. They seek a public injunction requiring HLG to eliminate block billing from its retainer agreements and cease charging for administrative fees. Furthermore, they demand sanctions under California law and compensation for non-economic damages suffered due to distress caused by these practices.
Representing the plaintiffs are attorneys Joshua J.K. Henderson and Joshua S. Markowitz from Carcione, Henderson & Markowitz LLP. The case is presided over by Judge A. Hernandez under Case ID 24CV451266.