Aflac, Inc. v. Williams

Fletcher, Justice.

We granted the writ of certiorari to determine whether a client must pay legal fees to an attorney under a long-term retainer contract after terminating the contract. Reversing the Court of Appeals, we hold that an attorney may not recover damages under a penalty clause when a client exercises the legal right to terminate the attorney’s retainer contract.

John Amos, chairman and chief executive officer of AFLAC, Incorporated and Peter Williams, an attorney in private practice, entered into a seven-year agreement in 1987 for Williams to provide legal advice to company officers…