NEW ORLEANS – A California-based law firm wants a lawsuit filed against it alleging it failed to pay other firms their fair share of contingency fees in a products liability action moved to a Louisiana federal court.
Defendants Troy A. Brenes and Brenes Law Group PC filed their seven-page notice of removal August 15 in the U.S. District Court for the Eastern District of Louisiana.
Brenes, which is based in Irvine, Calif., wants the lawsuit removed from the 21st Judicial District Court for the Parish of Tangipahoa, La.
The plaintiffs, Broussard Knoll Law Firm and Arthur S. Patron Jr., filed their lawsuit June 30 against Brenes in the state court.
Iris Guzman, in April 2016, hired Aaron Broussard after being referred to by Patron to represent her in a medical malpractice and products liability lawsuit against Atrium Medical Corporation.
At the time, the attorneys agreed to split the contingency fee: Broussard, 70 percent; attorney Allan Breslin, 15 percent; and Patron, 15 percent.
The case became a part of a multi-district litigation, or MDL. Guzman’s attorneys then recommended that Adam Evans with Hollis Law Firm be retained because of his experience in medical malpractice litigation.
The attorneys entered into a joint venture agreement – orally – to represent Guzman. Under the agreement, Broussard would receive 35 percent of the fees recovered and reimbursed all case expenses; Patron would receive 15 percent; Breslin would receive 15 percent; and Hollis would receive 35 percent.
Guzman agreed to and signed off on the addendum to the attorney-client contract.
Later, Evans left Hollis and joined Brenes, but continued to handle Guzman’s case. Eventually, Guzman’s claims against Atrium were settled by Brenes.
However, the other attorneys claim Brenes failed to notify them of the settlement or disbursement, and “continue to refuse to pay” them their share of fees or reimbursement of expenses.
“Here, Defendants are liable to Plaintiff Law Firms for their intentional breach of the agreement to split the contingency fee and reimburse case expenses out of the settlement recovery,” their June complaint states.
“Specifically, Brenes and Brenes Law Group PC never informed Plaintiff Law Firms of any settlement agreement pending, nor did Defendants make any effort to protect Plaintiff Law Firms’ lien rights in connection with any negotiations leading up to the settlement agreement, nor in connection with the acceptance of said settlement agreement.
“On the contrary, Defendants’ responses to inquiries from Plaintiff Law Firms indicate their specific intent to deny their obligations to honor Plaintiff Law Firms’ lien.”
According to the removal notice, Guzman’s settlement amount is “confidential.”
Deutsch Kerrigan LLP in New Orleans is representing the defendants in the action.
