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Company claims contractor billed millions in spurious fees

A California contractor is being sued by a corporation concerning the charging of spurious fees when hired on to perform certain services.  The contractor was hired to manage workers' compensation cases for the company.  

It is claimed that over a seven-year period the contractor charged at a minimum $450,000 in unauthorized fees.  Additional excessive fees may also be claimed as the review of the contractor's billings continues.

The contractor is considered to be a national provider of these sorts of services and its net worth is said to be $433 million.  It was hired on by the corporation to perform case management and utilization review of workers' compensation claims.

The corporation claims that the contractor at some point began placing an unauthorized charge into the invoices it submitted.  An audit conducted in 2012 purportedly showed that this extra fee was being added beginning in 2005.  Requests for refunds by the corporation were refused.

Many business litigation matters can ultimately involve tens of millions of dollars and that's why able business attorneys can play such an important role.  The differing parties to these cases may all express legitimate business concerns when these matters go to court and it will be up to a judge or jury to sort these issues out.  Ultimately the outcome of such cases can be based upon the unique facts of the individual matter.  In some cases attorneys will represent clients in front of juries.  In other instances alternative approaches could be taken to resolve the matter.  Most matters are actually settled before ever being taken to court.

Source: Rochester Business Journal, "Wegman files lawsuit against California firm," Will Astor, March 14, 2014

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