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US appeals court upholds $114,663 legal fee award, ruling AI use alone does not prove overbilling

By November 3, 2026

A federal appeals court recently upheld the award of $114,663.11 in legal fees, rejecting claims related to AI usage. The court clarified that accusations of inflated billing require concrete evidence, particularly following Flux Drive Inc.’s unsuccessful trade-secrets lawsuit. This ruling reinforces the notion that simply employing AI does not warrant a reduction in legal fees, establishing a significant precedent for similar cases moving forward.

https://timesofindia.indiatimes.com/world/us/a-us-company-argued-that-lawyers-using-artificial-intelligence-should-receive-lower-fees-after-its-trade-secrets-lawsuit-was-dismissed-a-federal-appeals-court-has-upheld-a-114663-award-saying-no-overbilling-was-shown/articleshow/135508298.cms

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