Kasowitz Benson Torres has sued a spinoff law firm founded by a group of its former attorneys, alleging in New York state court that the rival is unfairly holding on to legal fees tied to a settlement involving a former Kasowitz client.
New York-based Kasowitz Benson, known for its commercial litigation work, asked a judge on Dec. 30 to bar Glenn Agre Bergman & Fuentes from disbursing any settlement proceeds until the legal challenge is resolved.
The upstart firm has not yet responded in court to Kasowitz’s bid for a temporary restraining order.
The lawsuit said the settlement was confidential and did not identify a specific amount of legal fees in dispute. The complaint was redacted to shield most of the client-related information, including details about the underlying litigation.
A July 2016 retention agreement included as part of the complaint said the underlying case involved U.S. renewable energy company SunEdison Inc.
Court records show Glenn Agre lawyers, including managing partner Andrew Glenn, were previously part of a Kasowitz plaintiffs’ team pursuing claims tied to the bankruptcy of SunEdison.
Kasowitz partner Joshua Siegel in New York, representing the 250-lawyer firm in the lawsuit against Glenn Agre, on Tuesday did not respond to a message seeking comment.
Glenn, who leads Glenn Agre’s bankruptcy and restructuring team, in a statement on Tuesday called Kasowitz’s fee lawsuit “an unwarranted attempt to gain leverage in ongoing negotiations over the division of a contingency fee.”
SunEdison, which is now privately held, did not immediately respond to a similar message.
Glenn was among seven Kasowitz partners who left the firm in 2021 to form litigation-focused Glenn Agre.
In the fee lawsuit, Kasowitz said it was entitled to 15% in legal fees paid from the settlement, but Glenn Agre “has unilaterally stated its intention to take 90% (and potentially all) of the disputed funds.”
Kasowitz said it “disputes that [Glenn Agre] is entitled to take an extraordinary share of the legal fee, which was duly earned by Kasowitz under the retention agreement over nearly five years,” the lawsuit said.
The firm said in its complaint that it “is entitled to the proportional share of the fair and reasonable value of its services.”
(Reuters)