A recent NLJ story, “Orrick Wants to Fire MGA Again Over a Second Billing Dispute” reports that Orrick, Herrington & Sutcliffe has moved to withdraw from representing MGA Entertainment Inc., citing $3.85 million in unpaid legal fees and other compensation associated with a high-profile case against Mattel, Inc. In a Sept. 23 filing, Thomas McConville said its client, the manufacturer of the Bratz doll, had agreed to pay a fixed monthly amount of $550,000 beginning in December 2010, in return for representation in its long-running dispute with Mattel, maker of Barbie. 

MGA was to turn over insurance payouts to cover legal fees, costs and expenses.  Instead, MGA has paid Orrick’s fees only twice – and has not turned over insurance proceeds since May 2011.  In addition, MGA owes at least $287,000 for outstanding costs and expenses.The agreement between Orrick and MGA requires that all unpaid fees and costs become due 60 days following judgment in the Bratz case, according to the motion.  Given the date of the judgment, MGA’s unpaid attorney fees and other compensation could exceed $20 million when they come due on Oct. 3, the motion said.

According to the motion, MGA has no plans to pay the unpaid amounts to Orrick and had filed an arbitration action against its former firm seeking more than $10 million.  As a result, both parties have a conflict that impedes their ability to continue working together in the Mattel case.  The withdrawal, if granted, would not be the first time Orrick has fired MGA as a client.  While MGA’s request for attorney fees in the Mattel action was pending, Orrick abruptly withdrew from a related copyright action in New York citing $1.2 million in unpaid legal bills.