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O'Melveny Seeks to Collect $10M in Legal Fees From Former Client

July 21, 2010 | Posted in : Fee Agreement, Fee Dispute, Fee Dispute Litigation / ADR, Litigation Management, Unpaid Fees

A recent law.com story, “O’Melveny Sues Bratz Doll Maker MGA Over $10.2 Million in Unpaid Legal Fees” reports that O’Melveny & Myers has filed a suit against MGA Entertainment seeking payment of $10.2 million in unpaid legal fees related to the company’s long-running legal dispute with Mattel over ownership of the ownership of Bratz dolls.  O’Melveny’s role representing MGA ended in 2007.  According to the complaint, O’Melveny claims that MGA entered into oral agreements that were subsequently confirmed in writing about the range of legal services the firm would provide.  For years, MGA paid O’Melveny’s legal fees, but eventually a billing dispute forced the firm to withdraw from the case.  Since that time, O’Melveny has been unable to resolve its payment issues with its former client.

The firm says MGA “claimed to be conducting fee audits” that were never provided to O’Melveny.  When one was completed, MGA just commenced a new fee inquiry, the firm says.  “Both during its representation of MGA, and for almost three years after the Court determined that it was appropriate for O’Melveny to withdraw as MGA’s counsel, O’Melveny has attempted to resolve this fee dispute with MGA outside the courtroom by direct negotiation and professional mediation,” the firm states in its complaint.  “All of those efforts have proven unsuccessful, and O’Melveny’s patience and attempts at resolution have been disregarded or exploited by MGA.”