A recent NLJ story, “Judge Allows Orrick to Fire MGA Over Unpaid Legal Bills” reports that a federal judge has granted Orrick, Herrington & Sutcliffe’s motion to withdraw from representing MGA Entertainment Inc., maker of the Bratz doll, in its copyright dispute with Mattel Inc.  On Sept. 23, Orrick moved to withdraw from representing MGA and its chief executive, Isaac Larian, citing $3.85 million in unpaid legal fees and other compensation associated with the Mattel case. 

According to the motion, MGA had agreed to pay a monthly fixed amount of $550,000 beginning in December 2010 and turn over its insurance payouts to cover legal fees, costs and expenses.  Instead, the motion said MGA has paid Orrick’s fees only twice – in January and March – and has not turned over insurance proceeds since May 2011.  In addition, MGA owes at least $287,000 for outstanding costs and expenses, the motion said.

According to Orrick’s motion, the agreement between Orrick and MGA required that all unpaid fees and costs become due 60 days following the judgment, which would have been Oct. 3.  MGA had no plans to pay the unpaid amounts to Orrick and has filed an arbitration action against the firm for more than $10 million, rendering a relationship impossible, the motion said.