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3M May Have to Pay Defense Fees for Withdrawing Suit

September 21, 2011 | Posted in : Defense Fees / Costs, Fee Entitlement / Recoverability

A recent American Lawyer story, “Porton Wants Legal Fees if 3M is Allowed to Withdraw Suit” reports that litigation involving Porton Capital, 3M Company and prominent lawyer Lanny Davis took a new turn Monday, with Porton’s lawyers asking New York state court not to allow 3M to withdraw a suit filed against Porton unless 3M agrees to pay the investment firm’s legal fees. 

In a letter filed Monday in New York state court by its counsel at Boies Schiller & Flexner, Porton asked to be compensated for legal expenses it incurred defending itself after 3M filed two similar conspiracy and defamation suits in New York naming Porton among the defendants.  3M subsequently moved to withdraw those suits on the way to filing a separate federal suit in Washington, D.C.  One of the New York suits has been dismissed; 3M is seeking to withdraw the second one.

In his 50-page letter (pdf), Boies Schiller litigation partner Christopher Duffy says 3M’s suit should not be dismissed unless the company agrees to compensate Porton for its attorneys’ fees.  Duffy argues that 3M sought two successive dismissals in New York, a forum its counsel now admits is inappropriate for the lawsuit.  In the process, Duffy claims that his clients were required to unnecessarily defend themselves in court multiple times.  The plaintiff’s actions Duffy writes, “cost the defendants in the form of needless legal fees.