When you hire a lawyer, you trust that they’ll act in your best interest, keep you informed, and provide competent representation. But what happens when an attorney’s negligence forces you to spend even more money on legal fees just to fix their mistakes? Until recently, Michigan law gave unclear answers.
On December 30, 2024, the Michigan Supreme Court issued a landmark decision in Hark Orchids, LP v Buie, clarifying that clients can recover certain attorney fees as damages in a legal malpractice lawsuit.
The Case at a Glance
- Background: A business hired lawyers to handle a workers’ compensation case. During the litigation, the employee offered a global settlement that would have resolved all her claims for $125,000.
- The Mistake: The lawyers never told their client about the global settlement offer. Instead, they settled only the workers’ comp claim for approximately $35,000.
- The Consequence: The employee later sued again, alleging retaliation, discrimination, and emotional distress. The business had to spend over $300,000 in additional attorney fees defending that second lawsuit—fees it wouldn’t have incurred had the lawyers done their job.
When the business sued its former attorneys for malpractice, lower courts threw out the case, ruling that attorney fees aren’t recoverable under the “American Rule,” which generally requires each side to pay its own legal fees.
What the Supreme Court Held.
In a unanimous opinion, the Court made several key points:
- Clients can recover “corrective fees.” If you had to hire another attorney (or spend more with your current one) to fix or mitigate the damage caused by malpractice, those fees can be part of your damages.
- The American Rule doesn’t block malpractice recovery. The Court explained that the American Rule prevents shifting attorney fees in ordinary litigation, but it doesn’t apply when the fees themselves are the direct result of attorney negligence.
- Not all fees are recoverable. You still cannot recover the cost of suing your lawyer for malpractice (called “litigation fees”). But you can recover initial fees paid for negligent work and additional corrective fees that were reasonably necessary to fix the harm.
- The goal is to make clients whole. Just as a patient can recover the costs of corrective surgery after medical malpractice, a legal malpractice victim can recover the costs of corrective legal work.
Why This Matters for Clients
This decision is a major victory for Michigan clients. It means:
- If your lawyer’s mistake forces you into unnecessary legal battles, you can hold them financially accountable.
- Businesses and individuals won’t be left footing the bill for attorney errors that cause avoidable litigation.
- Legal malpractice cases in Michigan will now align with the majority of states that recognize attorney fees as recoverable damages when caused by negligence.
How Eardley Law Can Help
At Eardley Law, we represent clients across Michigan in complex legal malpractice, personal injury, employment, and civil rights cases. We understand how devastating it can be when the professional you trusted makes a mistake that costs you time, money, and peace of mind.
If you believe you’ve been harmed by attorney negligence, you may have options to recover not only your underlying losses but also the attorney fees you had to spend correcting the damage.