Davis Polk & Wardwell is seeking approximately $3.3 million in allegedly unpaid legal fees from Enel North America and two affiliates through a breach-of-contract lawsuit filed in New York state court, stemming from more than 2,000 hours of legal work performed for an Enel subsidiary during a Texas energy dispute.
The Roots of the Dispute in Post-Uri Texas Energy Markets
In February 2021, Winter Storm Uri struck Texas, triggering severe disruptions across the state’s energy market. High Lonesome had entered into a derivative contract designed to manage weather-related financial risks. Following the storm, calculations under that agreement indicated that the wind farm operator owed Allianz more than $125 million, according to Davis Polk’s court filings.
Allianz subsequently sued High Lonesome in 2022, transforming the weather-market fallout into a commercial case. Davis Polk represented the Enel subsidiary, deploying attorneys to navigate the financial liability. The firm’s lawyers logged more than 2,000 hours of legal work as the litigation ground through complex jurisdictional and contractual motions.
When Client Payments Stopped and the Legal Relationship Fractured
According to the New York lawsuit, the working relationship began to fray when Enel stopped paying its legal bills in late 2024. Even as the invoices went unanswered, Davis Polk continued its representation of High Lonesome for months, watching the unpaid balance climb into the millions by June 2025.
Law firms handling commercial disputes constantly walk a line between preserving corporate client relationships and collecting substantial earned revenue. When informal resolution efforts failed, Davis Polk formally sought an exit. In September 2025, a federal judge granted the firm permission to withdraw from the underlying Allianz litigation. High Lonesome subsequently retained Gibson, Dunn & Crutcher to take over its defense.
Navigating Separate Legal Fronts in New York Courts
Davis Polk’s current action against Enel North America and its affiliates operates independent of the ongoing Allianz litigation. While Gibson, Dunn & Crutcher handles the remaining defense strategies for the West Texas wind farm operator, Davis Polk is pressing forward in New York state court to recover its millions in outstanding service fees, alongside pre-judgment and post-judgment interest.
This fee dispute underscores the financial vulnerabilities law firms face when litigation matters stall or client payment priorities shift. As the litigation moves forward in New York, the case serves as a reminder of how the economic shockwaves of Winter Storm Uri continue to reverberate through corporate balance sheets and legal ledger books alike.
