Law & informationWork & marketsUnited StatesGovernance
The lawyers used AI. That wasn’t enough to cut their fee.
The winning side used AI. Why shouldn’t the losing side get a discount on the lawyers’ fees? The Tenth Circuit had a useful answer in Flux Drive v. Rong: show what was unreasonable about the hours. Pointing to the software did not do that work.
The dispute was over fees awarded after a dismissal for lack of personal jurisdiction. It was not a client asking a lawyer to explain a private invoice. In its October 30 opinion the court upheld an initial $114,663.11 award challenged on the AI issue. It also upheld a separate supplemental award. The opinion describes time recorded in tenths of an hour, individual entries rather than blocks of undifferentiated tasks, and reductions where appropriate. The challengers did not show that the hours the lawyers actually spent were unreasonable. That record, not the mere fact of adopting technology, mattered.
There are two protections here, and each side of a bill needs one. A lawyer paid by the hour cannot fairly charge for three hours of drafting that never happened. Equally, checking whether an AI tool invented a citation is work, even if generating the first draft took seconds. The ABA’s guidance on generative AI distinguishes actual time from time a lawyer hypothetically would have spent without the tool. Read together, the opinion and the guidance give clients a more useful question than “Did you use AI?” Ask what the lawyer did, why it needed doing, and what contemporaneous record supports the charge.
An opponent needs evidence that hours were unreasonable; a lawyer still has to show what work was actually done.
How we read the signal
Analysis frame
Evidence level
Primary-source evidence
Analytical lens
Distinguish the reasonableness of a fee-shifting award from a client's obligation to pay under a private fee agreement.
Affected groups
People who have to pay an opposing party’s legal fees
Lawyers and clients negotiating what efficient work should cost
What remains unknown
The record does not establish what the case would have cost without the tool.
The opinion does not settle how every legal fee agreement should handle automation.
Second-order effects to watch
A blanket discount could penalize documented verification work.
An uncritical bill could reward a firm for hours a tool actually saved.
Two awards, not two AI penalties
The $114,663.11 figure was the initial award at issue in the AI objection. The separate $68,990.50 supplemental award followed consideration of additional fees. Neither number establishes a standard price for AI-assisted legal work.
Primary trail
Go to the source
Read the evidence behind this analysis. External links open in a new tab.