A state appeals panel has reversed part of a jury verdict in a legal fee dispute, finding a law firm was not entitled to additional money—outside of a contingency fee—when a former client received non-cash benefits from a settlement.
Scarola Ellis, which is now 10-attorney Scarola Malone & Zubatov, sued its former client, real estate developer Elan Padeh, for legal fees in 2009. The firm claimed Padeh abandoned an underlying lawsuit when he dropped his claims and settled the case, and then was unjustly enriched when possible sanctions threatening his company were withdrawn as part of the settlement.
