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Texas Firm Files Suit in $10M Contingency Fee Dispute

April 26, 2012 | Posted in : Fee Dispute

A recent Texas Lawyer story, “Firm at War Over $10 Million Contingency Fee in Patent Suit,” reports that The Matthews Firm has sued Laminack, Pirtle & Martines and two clients they jointly represented, alleging Laminack, Pirtle and the clients refused to recognize The Matthews Firm’s interest in a contingency fee arising from a nearly $50 million judgment.  Fred Hagans, who represents the plaintiff in The Matthews Firm v. Laminack, Pirtle & Martines, et al., says his client is entitled to about $10 million.

The plaintiff, a Houston firm that handles intellectual property work, brings breach of contract and quantum meruit causes of action against the defendants and seeks a declaratory judgment that it is entitled to a 22.5 percent fee in the underlying case.  But Rick Laminack, a partner in Houston’s Laminack, Pirtle, says he’s surprised The Matthews Firm sued his firm and its client over the contingent fee, since the underlying suit, Wellogix Inc. v. Accenture, is on appeal before the 5th U.S. Circuit Court of Appeals.

In February 2009, The Matthews Firm alleges, Wellogix hired Laminack, Pirtle to pursue litigation against specific parties related to alleged improper use of some software.  Wellogix’s contract with Laminack, Pirtle calls for 40 percent of any settlement or recovery made after litigation is filed against alleged improper users, and 45 percent if a notice of appeal is filed in the suits.

CLICK HERE to read the Matthews petition.