Huber v. Taylor is the case. Here in this extensive report from Litigation and Trial Blog is the full story of a legal malpractice/disgorgement case and its appeals.
"The prior opinion, Huber v. Taylor, 469 F.3d 67 (3d Cir. 2006), was one of the more important recent opinions for "lawyer’s lawyers" in the Third Circuit. The case is also a great example of how the paperwork these cases, e.g. attorney malpractice or disputes between lawyers, can quickly mushroom, and why they get so expensive.
Most importantly, it shows just how far the Third Circuit (and I’d say most appellate courts, federal or state) is willing to go to police the professional by enabling clients to recover from attorneys.
Let’s start with the facts, as recounted by the second appeal:
Plaintiffs, all of whom have asbestosis, were previously represented by Defendants in asbestos personal injury actions in Mississippi state court. Asserting multiple claims on behalf of themselves and a putative class of asbestosis victims, Plaintiffs alleged that Defendants failed to disclose both the material terms of settlement offers as well as the fee-sharing arrangements among co-counsel during the course of the Mississippi litigation. They also alleged, among other things, that Defendants (1) distributed less of the settlement funds–totaling hundreds of millions of dollars–to them than to other similarly situated clients, all to the benefit of Defendants; and (2) charged expenses that were inflated, inappropriate, and, in some instances, fictitious. Plaintiffs asked for compensatory damages, disgorgement of attorneys’ fees, as well as punitive damages."