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Jailed Ex-Qwest CEO: 'I Won't Pay for My Attorneys' Underwear'

By Adam Ramirez on March 24, 2011 | Last updated on March 21, 2019

Be honest. Have you ever billed a client for a late night, in-room movie?

How about for fresh underwear?

Joseph Nacchio, former CEO of Qwest Communications, has sued the lawyers who represented him in his insider-trading case, claiming they "grossly overbilled" him and sought payment for staff breakfasts, underwear and in-room movies, Bloomberg reports.

Guess if you're already running up the tab on bagel spreads and Spectravision, you don't think twice about tacking on the cost of new boxer brief, right?

Nacchio's malpractice suit accuses Herbert Stern and the Roseland, New Jersey firm of Stern & Kilcullen of negligence and seeks more than $25 million in compensatory and punitive damages, as well as attorney's fees, Bloomberg reports.

The suit accuses Stern of negligence in his handling of Nacchio's trial, including the "blatant failure to comply with basic litigation procedures," practices that Nacchio says led to the trial judge barring the defense's lone expert witness.

It also alleges that Stern & Kilcullen improperly used money it held in trust to pay itself unreasonable and excessive fees, the ABA Journal reports.

The suit claims the firm sought payment for tens of thousands of dollars in breakfasts, underwear for lawyers and in-room movies during the trial in federal court in Denver.

(What was the bill breakdown: 1/3 on muffins and juice, 1/3 on hotel in-room entertainment, and 1/3 on Victoria's Secret and Hanes?)

Nacchio, 61, is serving a 70-month prison sentence after his conviction in 2007 for illegally selling $52 million of Qwest stock in 2001 based on inside information.

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