Facts

In February 2003, plaintiff Christie, Parker & Hale LLP (CPH) entered into an implied-in-fact contract to represent defendants Martin Manufacturing Inc. (MMI) and Christopher Martin in a patent declaratory judgment suit, which MMI was a party to. MMI agreed to pay CPH at the standard hourly rate in effect when services were rendered, and to reimburse CPH for all costs and expenses incurred on its behalf.

On April 16, MMI and CPH entered into a written representation agreement whereby CPH agreed to provide legal services in connection with the suit, and MMI again agreed to pay the standard hourly rate plus costs and expenses. This compensation was to be paid from any monetary recovery obtained from Currie Technologies Inc. (CTI) in the underlying suit, or under MMI's insurance coverage. On May 5, CTI and MMI entered into a written agreement, where CTI agreed to pay MMI $250,000 over a four year period, payable to CPH.

Between February and May, pursuant to MMI's requests, CPH had prepared, reviewed, and filed numerous court documents, engaged in party communications and negotiations in connection with the suit. CTI made payments to CPH in the amount of $100,000, pursuant to the agreement, but despite the demand for the outstanding $150,000, failed to make any additional payments.

CPH's services totaled $290,453, and after a $100,000 payment on the account on Feb. 16, 2006, $190,453 remained outstanding.

PLAINTIFF'S CONTENTIONS:
CPH contended that on Dec. 22, Martin conspired knowingly and willfully in an email with CTI's president, Malcolm Currie, to damage CPH by depriving it of the benefits of the agreement, inducing CTI to cease payments. CPH alleged that Martin requested the remaining payments be sent directly to MMI.

DEFENDANTS' CONTENTIONS:
MMI and Martin contended that the underlying suit was tendered to Intellectual Property Services Corp. (IPSC), insured by Nutmeg Insurance Company, which was replaced by the Hartford; and that the Hartford subsequently hired CPH to defend Martin and MMI. The defense further alleged that on Feb. 14, CPH returned a document containing procedures and billing guidelines to Hartford. MMI and Martin claimed that a copy of this document was emailed to MMI, stating "I approved Mr. Schwartz as litigating counsel in the Currie matter today," leading MMI to believe Hartford retained CPH, and would be paying its fees and costs.

Damages

CPH sought damages of $190,453.

Result

The parties reached a settlement whereby Martin acknowledged MMI was liable for unpaid fees and costs to CPH, and both parties waived the right to seek damages. Martin, individually and as former President and Director of MMI, released CPH from all claims arising from the matter.

Other Information

FILING DATE: April 15, 2008.