O’Melveny & Myers, a prominent law firm, has submitted a request to a Manhattan federal judge seeking over $139 million in legal fees on behalf of their client, American Airlines. The fee request follows American Airlines’ successful $1 trial victory in a long-standing antitrust case against flight booking company Sabre. The lawsuit alleged that Sabre engaged in anticompetitive practices, adversely impacting competition in the flight-booking market and imposing excessive fees.
In a recent court filing, O’Melveny attorneys emphasized that the favorable verdict, reached last year, marked the culmination of a challenging and risky battle that spanned a decade. Notably, neither party involved in the case appealed the verdict, solidifying the trial outcome.
The legal fees sought by O’Melveny are tied to more than ten years of litigation on behalf of their then-client, US Airways, which merged with American Airlines in 2013. Initially, American Airlines had pursued damages exceeding $1 billion, alleging that Sabre’s actions significantly harmed competition and imposed exorbitant fees. Sabre, represented by attorneys from Skadden, Arps, Slate, Meagher & Flom, denied the allegations.
Earlier this month, Sabre’s attempts to prevent O’Melveny from seeking any fees were unsuccessful. Sabre contended that American Airlines should not be entitled to millions of dollars in legal fees, considering the nominal damages awarded at just $1. However, the court ruled against Sabre’s motion.
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The specific amount of legal fees sought by American Airlines’ legal team was disclosed publicly for the first time in the recent court filing. Notably, Sabre, based in Southlake, Texas, declined to comment, while American Airlines, headquartered in Fort Worth, Texas, referred to its filings and refrained from further statements.
Sabre is expected to argue that American Airlines did not prevail on all of its claims, suggesting that awarding all of the legal fees incurred since 2011 would be inappropriate. American Airlines’ lawyers, in their filing, argued that the claims made in the lawsuit were closely intertwined and defended the reasonableness of their hourly rates.
The trial held last year marked the second phase of the litigation. In a trial in December 2016, American Airlines secured approximately $15.3 million in damages, albeit with certain limitations. However, an appeals court decision subsequently paved the way for a second trial, where American Airlines sought additional damages, including lost profits.
O’Melveny, with a team of approximately 800 lawyers, achieved notable success in the legal industry, surpassing $1 billion in revenue for the first time last year, according to The American Lawyer, a leading legal industry publication.
O’Melveny & Myers is seeking more than $139 million in legal fees on behalf of American Airlines following their $1 trial victory against Sabre in an antitrust case. The law firm’s request represents compensation for over a decade of litigation efforts, highlighting the culmination of a challenging legal battle. Sabre’s defense team has denied the allegations, and the case will continue to unfold as arguments regarding the appropriate award of legal fees ensue.
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