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Without Fee Agreement, Texas Firm Pursues Fees Under Quantum Merit Theory

March 4, 2011 | Posted in : Fee Agreement, Fee Award Factors, Fee Dispute, Fee Jurisprudence, Unpaid Fees

A recent Texas Lawyer story, “Firm Alleges Former Client Didn’t Pay Fees” reports that Houston-based Roach & Newton, LLP has sued former clients Walter Teachworth and TFT Galveston Portfolio, Ltd., alleging they failed to pay the firm for post-verdict and appeals work following a $51 million adverse jury verdict.  In its petition, Roach & Newton v. TFT Galveston Portfolio, Ltd., et al., the firm alleges the defendants benefited from its work and that because of it, the defendants were able to settle the underlying litigation in 2010 for a “fraction of the amount of the judgment.”

Randy Roach, a partner in Roach & Newton, alleges Teachworth and TFT, have paid his firm nothing.  He says the unpaid fees total about $425,000, but because the firm didn’t have a written fee contact with Teachworth and TFT to handle the post-verdict and appellate work, they aren’t suing for beach of contact.  “We aren’t suing on a breach-of-contact theory.  It’s a quantum meruit theory, which is whatever is [a] reasonable value for our services,” he says.