Brobeck, Phleger & Harrison v. Telex Corp.
United States Court of Appeals for the Ninth Circuit
602 F.2d 866 (1979)
After losing a major antitrust judgment on appeal to IBM, Telex Corporation (Telex) (defendant) searched the market for top antitrust counsel to seek Supreme Court review, and negotiated a fee agreement with an attorney at Brobeck, Phleger & Harrison (Brobeck) (plaintiff) guaranteeing Brobeck at least $1,000,000 if the case reached a certiorari petition (dropping to $25,000 if certiorari were denied). Telex and IBM settled before the Supreme Court ruled on the petition, and Brobeck withdrew the petition and billed Telex the $1,000,000. When Telex refused to pay, Brobeck sued and won summary judgment; Telex appealed, arguing the fee agreement was unconscionable.
Whether a contract for attorney's fees may be deemed unconscionable when it represents an agreement between parties of comparable bargaining power made under circumstances that render the terms reasonable to both parties.