SONNENSCHEIN FEE DISPUTE SETTLED
A recent law.com story, “Sonnenschein Settles Fee Dispute With Ex-Client Who Lost Money With Madoff” reports that a former client of Sonnenschein Nath & Rosenthal who fell victim to Bernard Madoff has agreed to pay $650,000 to settle a fee dispute with the law firm. The settlement is about 20 percent less than Sonnenschein had originally sought ($833,000) from Elaine Stein when it sued her in December 2009 in Sonnenschein Nath & Rosenthal v. Stein. Stein engaged Sonnenschein after one of her sons, Stuart Stein, took control of her assets by convincing financial institutions she was incompetent. The deal to pay Sonnenschein was knocked off course in December 2008 with the implosion of Bernard Madoff’s massive Ponzi scheme. Sonnenschein in its complaint said “significant funds of a martial trust had been invested with Madoff were lost”.
Under the settlement between Sonnenschein and Ms. Stein, the firm’s former client is to deliver $500,000 upon execution of the stipulation of the deal. Another $150,000 would be paid to Sonnenschein upon the delivery of the opinion letter, which the firm agreed to draft. Should Ms. Stein not pay the firm the $150,000, the firm reserved the right to go after the full $833,000 it originally sought.