Tabberone is pronounced tab ber won |
|
The Tabberone™ Archives These articles concern what we consider major trademark and copyright issues. They are usually reproduced with the original source referenced. Bear in mind, these articles are copyrighted and commercial use without permission of the authors may be considered infringement. The intended use here is educational, commentary and non-commercial. The reason they are reproduced in the Tabberone™ Archives, as opposed to just providing a link, is because links disappear and pages are removed. That presents a messy confirmation process that is annoying to the browser (you) but also presents a credibility issue. We do not claim any rights in these pieces. Do not regard the absence of a copyright statement or © to mean the article is not copyrighted. Some sites do not have a copyright statement. When an article or a comment is posted on the internet by the copyright owner, the owner is seeking a world-wide, 24/7 audience; sometimes for a limited amount of time, sometimes indefinitely. In essence, an internet posting intentionally relinquishes one's copyright for exclusivity because the owner has posted it on the internet to been seen by everyone, everywhere. The Tabberone™ Archives non-commercial duplication of the posting is simply a continuance of the original wishes of the copyright owner. We post these articles for reference, for commentary and for confirmarion of our position. |
Source: http://www.law.com/jsp/article.jsp?id=1202423160512 August 30, 2008 - content has not been altered. Links have been removed. |
McAfee Sues WilmerHale Over $12 Million in Legal Fees
Niraj Chokshi
Anti-virus software maker McAfee Inc.
The Santa Clara, Calif., company is embroiled with Wilmer, Cutler, Pickering, Hale and Dorr
"[WilmerHale] intentionally overworked and churned the representation of Goyal; shamelessly employing over 100 WilmerHale timekeepers in the feeding frenzy," McAfee alleged in a complaint filed in the Eastern District of Texas earlier this year. "Defendant's bills reflect at least 16 partners, 34 associate attorneys, 10 legal assistants and 49 staff personnel -- how else could they amass this enormous trove of cash?" the complaint read.
WilmerHale wants the complaint dismissed, explaining in a statement issued Monday that the lawsuit is "no more than a pretext to avoid its advancement duties to Mr. Goyal."
In 2002, the Department of Justice began what would become a three-year investigation into McAfee's accounting practices, according to WilmerHale's motion to dismiss the lawsuit. Goyal was charged with accounting fraud and convicted by a San Francisco jury in May 2007
Martin Rose, the Dallas lawyer representing McAfee in the fee dispute, alleges in his latest complaint that WilmerHale, which brought in East Coast lawyers to represent Goyal in a San Francisco trial, charged almost $200,000 in expenses for luxury hotel rooms, limousines and charges for room service and bar tabs. The software company described WilmerHale as "unrepentant in its greed."
Paul Yetter, the Houston lawyer representing WilmerHale in the fee dispute, said by e-mail Monday that "over 80 percent of the defense work was done by two lead WilmerHale partners and a handful of associates. The bulk of other timekeepers were needed for review of 1.2 million documents in the case."
He stated that the fees were in line with similar cases, including the backdating trial of Brocade Communications CEO Gregory Reyes.
Yetter, of Yetter, Warden & Coleman
McAfee says the case may have been too "well tried." Its complaint says that an independent audit in December 2007 showed that WilmerHale had engaged in "a billing scheme which resulted in ... overcharging" since February 2003. McAfee is seeking damages, attorney fees and up to $12 million in legal fees.
WilmerHale argues that the suit was brought both at the wrong time and venue. The firm quoted McAfee as having said in a Delaware court that if Goyal's conviction is upheld on appeal, "he has to pay all those fees back, and it doesn't matter if they are reasonable or unreasonable." As a result, WilmerHale argues, the determination should be made at that point.
Rose disagreed. "So, I catch a guy who's been coming to my jewelry store every day and takes a gold watch every night. I gotta wait until he cleans the store out before I sue him?"
WilmerHale's motion also repeatedly cites a 1996 indemnity agreement between McAfee and Goyal. The agreement, WilmerHale argues, shows that McAfee knew litigation could be costly. In it, McAfee acknowledged that "costs of litigation may be so enormous ... that the defense ... of such litigation is often beyond the personal resources of ... officers."
WilmerHale says the dispute belongs in Delaware, pointing to a forum selection clause in the indemnity agreement mandating that venue "for all purposes in connection with any action or proceeding which arises out of or relates to this agreement."
Rose countered that the indemnity agreement applies to disputes between McAfee and Goyal, not the law firm brought in to represent him. "This lawsuit has nothing to do with the Delaware action or the indemnity agreement," he said.
On Thursday, the day WilmerHale submitted a corrected motion to dismiss the lawsuit, the judge in the case ordered McAfee to file a response no later than 5 p.m. today.
"We'll be responding," Rose said.
Copyright 2008 ALM Properties, Inc. All rights reserved.
|
General Articles | Cease and Desist Letters | Federal Court Cases | FAQs & Whines | Glossary | Hall Of Shame | Contributions
Corporate Lawyers |
Definitions |
Federal Court Cases Alphabetically | by Federal Circuit | by Subject | by Court Quotations |
Federal Statutes Copyright Act 17 U.S.C. 5 | Digital Millenium Copyright Act 17 U.S.C. 12 | Lanham Act 15 U.S.C. 22
|