Normally in my practice, I do not do litigation work. Over the past year, and more specifically in the past two weeks, though, I have seen very clearly why it costs so much and takes so long... I am working with a client through an appeal with the Board of Industrial Insurance Appeals in the Washington State Department of Labor and Industries. My client has been notified that it is a "successor" to a company that went out of business and owed the Department $25,000. The Department claims my client is a "successor" because it bought a "major part" of the property of the company going out of business. We feel confident that what it purchased did not constitute a "major part" but under the Department's rules, it must prove that it did not do so. In preparing to defend itself -- for a case that is really very straightforward with limited discovery, witnesses, and case law -- my client will likely incur $15,000 in legal fees. When I've been given a number like this from litigators in the past, it was difficult to understand why -- and now I truly understand it. From preparing the hearing memorandum to preparing witnesses (2) and evidence to attending the hearing, the time involved is exceptional. In my years of practice, I have had some difficult disputes and complex negotiations, but nothing that took the time, effort and energy that preparing for this did. Furthermore, it provides clarity as to why this particular successorship statute has no case law -- it's not worth it for most companies to fight it, giving the Department significant leverage in collecting from parties that should owe it nothing.
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