The fee fight grew out of a trade secrets suit Flux Drive brought over proprietary technology. The district court dismissed the claims against the Illinois-based Rong Defendants for lack of personal jurisdiction, then awarded the defendants their fees after reviewing the firm's billing records. Flux Drive appealed only the fee award, arguing the AI use made the charges excessive. The appeal is No. 25-1308. Brownstein partner Christopher Ottele said the decision confirms that AI does not replace the professional judgment attorneys must apply to court filings. Whether the ruling will be applied beyond this case is not yet clear, and the court's reasoning has not been tested in other circuits.
For attorneys, the ruling puts the burden on a fee challenger to prove that specific billing was unreasonable, rather than inferring overbilling from the presence of AI tools. That matters for clients who expect AI to shrink invoices. Commentary has noted that AI may cut the time a task takes but still require senior review, so billable hours do not necessarily fall. Firms relying on AI in fee-generating work should keep verification records on hand, since that documentation is what answered the challenge here. Coverage calls this an early appellate example of how courts may handle automated tools in fee disputes, so expect further litigation on the question.