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Posted On: 12/10/2020 12:51:28 AM
Well my memory was correct..
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Ex-Client Suing K&L Gates in Texas Adds Hundreds of Millions In Damages After Discovery
K&L Gates continues to dispute the allegations in the conflict-of-interest suit, filed in Hays County.
By Brenda Sapino Jeffreys | December 08, 2020 at 11:46 AM
K&L Gates office sign(Photo by Diego M. Radzinschi/ALM)
In an amended petition filed Monday, a Texas company significantly increased the amount of damages it seeks from K&L Gates in a conflict-of-interest suit that a Texas appeals court recently booted back to a trial court.
In the amended petition, Quantum Materials Corp. of San Marcus seeks $20 million in actual damages and $260 million in punitive damages—making for a big jump in actual damages, and more than 2.5 times the total amount Quantum Materials sought originally.
In the original petition filed in 2018 in Hays County district court, Quantum Materials sought $100,000 in actual damages and $100.3 million in punitive damages.
Plaintiffs attorney Michael Minns, of Minns & Arnett, said the damage requests are higher in the amended petition because the plaintiff is now aware of more evidence to support its claims, due to discovery in related lawsuits in Florida and Kansas.
The causes of action—breach of fiduciary duty, alleged violations of the Texas Deceptive Trade Practices Act, and legal malpractice—are unchanged.
K&L Gates continues to dispute the allegations.
In the petition, Quantum Materials alleges K&L Gates engaged in a conflict of interest by representing the business and its lenders in a dispute over a loan. That dispute led to Quantum Materials being sued in three states.
Quantum Materials, which makes tetrapod quantum dots for use in lighting applications, said in its petition that it engaged K&L Gates as counsel in 2016 to do corporate work, including drafting documents for a prospective lender. The company later shifted that legal work in-house, but maintains in the petition that K&L Gates never formally resigned from the representation.
According to the allegations, K&L Gates seeks payment for $300,000 in legal fees, but Quantum Materials seeks a court order that it does not owe the money.
In response to the amended petition, a spokesman for K&L provided this statement:
“Not only is plaintiff’s lawsuit a meritless tactical effort to avoid paying our firm the outstanding fees that it owes, but the preposterous relief sought by plaintiff lacks any basis in reality whatsoever. We will continue to vigorously defend against plaintiff’s baseless claims and pursue judgment on our counterclaim for fees, and are confident we will prevail.”
The suit was sent back to the trial court in October, after a three-judge panel of the Austin appeals court affirmed an order denying K&L Gates’ motion to dismiss the suit under the Texas Citizens Participation Act, also known as the Texas Anti-SLAPP statues, and the Texas Supreme Court declined to take the interlocutory appeal.
Read More:
Malpractice Suit Against K&L Gates Heads Back to Texas Trial Court
Texas Malpractice Suit vs. K&L Gates Claims Firm Abandoned, Then Sued, a Client
Brenda Sapino Jeffreys
Brenda Sapino Jeffreys
Senior reporter Brenda Sapino Jeffreys covers the business of law in Texas. Contact her at bjeffreys@alm.com On Twitter: @BrendaSJeffreys
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ATLANTA, GA 30308
(470) 294-1674www.garymartinhays.com
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News
Ex-Client Suing K&L Gates in Texas Adds Hundreds of Millions In Damages After Discovery
K&L Gates continues to dispute the allegations in the conflict-of-interest suit, filed in Hays County.
By Brenda Sapino Jeffreys | December 08, 2020 at 11:46 AM
K&L Gates office sign(Photo by Diego M. Radzinschi/ALM)
In an amended petition filed Monday, a Texas company significantly increased the amount of damages it seeks from K&L Gates in a conflict-of-interest suit that a Texas appeals court recently booted back to a trial court.
In the amended petition, Quantum Materials Corp. of San Marcus seeks $20 million in actual damages and $260 million in punitive damages—making for a big jump in actual damages, and more than 2.5 times the total amount Quantum Materials sought originally.
In the original petition filed in 2018 in Hays County district court, Quantum Materials sought $100,000 in actual damages and $100.3 million in punitive damages.
Plaintiffs attorney Michael Minns, of Minns & Arnett, said the damage requests are higher in the amended petition because the plaintiff is now aware of more evidence to support its claims, due to discovery in related lawsuits in Florida and Kansas.
The causes of action—breach of fiduciary duty, alleged violations of the Texas Deceptive Trade Practices Act, and legal malpractice—are unchanged.
K&L Gates continues to dispute the allegations.
In the petition, Quantum Materials alleges K&L Gates engaged in a conflict of interest by representing the business and its lenders in a dispute over a loan. That dispute led to Quantum Materials being sued in three states.
Quantum Materials, which makes tetrapod quantum dots for use in lighting applications, said in its petition that it engaged K&L Gates as counsel in 2016 to do corporate work, including drafting documents for a prospective lender. The company later shifted that legal work in-house, but maintains in the petition that K&L Gates never formally resigned from the representation.
According to the allegations, K&L Gates seeks payment for $300,000 in legal fees, but Quantum Materials seeks a court order that it does not owe the money.
In response to the amended petition, a spokesman for K&L provided this statement:
“Not only is plaintiff’s lawsuit a meritless tactical effort to avoid paying our firm the outstanding fees that it owes, but the preposterous relief sought by plaintiff lacks any basis in reality whatsoever. We will continue to vigorously defend against plaintiff’s baseless claims and pursue judgment on our counterclaim for fees, and are confident we will prevail.”
The suit was sent back to the trial court in October, after a three-judge panel of the Austin appeals court affirmed an order denying K&L Gates’ motion to dismiss the suit under the Texas Citizens Participation Act, also known as the Texas Anti-SLAPP statues, and the Texas Supreme Court declined to take the interlocutory appeal.
Read More:
Malpractice Suit Against K&L Gates Heads Back to Texas Trial Court
Texas Malpractice Suit vs. K&L Gates Claims Firm Abandoned, Then Sued, a Client
Brenda Sapino Jeffreys
Brenda Sapino Jeffreys
Senior reporter Brenda Sapino Jeffreys covers the business of law in Texas. Contact her at bjeffreys@alm.com On Twitter: @BrendaSJeffreys
Dig Deeper
Legal Services
Law Firms - Large
Legal Malpractice
Law Firms Mentioned
K&L Gates
Trending Stories
11th Circuit Denies Reality Winner's Appeal for Compassionate Release
DAILY REPORT ONLINE
Benjamin Moore Has Dismissed Its Entire Legal Department
CORPORATE COUNSEL
'Too Often Overlooked': Black Women Are Nearly Absent From the Federal Bench—It's Time to Change That
NATIONAL LAW JOURNAL
Big Firms Roll Out Bonuses and Other Payouts for Stressed Staffers
THE AMERICAN LAWYER
'A Disgrace': Hundreds of Lawyers Call for Bar Condemnations of Trump Election Lawyers
NATIONAL LAW JOURNAL
FEATURED PRODUCT
Global Briefing
A weekly, curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors.
Learn More
Recommended Stories
Adjusting the COVID-19 Response: How Law Firms Are Altering Austerity Measures
THE AMERICAN LAWYER
Adjusting the COVID-19 Response: How Law Firms Are Altering Austerity Measures
ALM STAFF | DECEMBER 04, 2020
Some firms are restoring pay after reducing salaries earlier in the year, while others make additional cuts.
Large Texas Firms Are Growing More Interested in Texas A&M Law Grads
Large Texas Firms Are Growing More Interested in Texas A&M Law Grads
BRENDA SAPINO JEFFREYS | DECEMBER 07, 2020
Since A&M bought its law school from Texas Wesleyan University seven years ago, school leadership is noticing the effects of the "Aggie ring on the finger."
Seven Atlanta Firms Secured PPP Loans Over $5M
DAILY REPORT ONLINE
Seven Atlanta Firms Secured PPP Loans Over $5M
MEREDITH HOBBS | DECEMBER 07, 2020
The data release comes amid growing law firm concerns on whether the spike in COVID-19 infections could lead to more shutdowns, prompting another round of cash flow issues.
Featured Firms
Law Offices of Gary Martin Hays & Associates P.C.
75 PONCE DE LEON AVE NE STE 101
ATLANTA, GA 30308
(470) 294-1674www.garymartinhays.com
Law Offices of Mark E. Salomone
2 OLIVER ST #608
BOSTON, MA 02109
(857) 444-6468www.marksalomone.com
Smith & Hassler
1225 N LOOP W #525
HOUSTON, TX 77008
(713) 739-1250www.smithandhassler.com
Presented by BigVoodoo
More from ALM
Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
CLE Center →
ALM Legal Publication Newsletters
Sign Up Today and Never Miss Another Story.
As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.
Privacy Policy
Law.com
FOLLOW US Follow us on Facebook Follow us on Twitter Follow us on LinkedIn Follow us on RSS
About Us / Contact Us / Site Map / Advertise With Us/ Customer Service / Terms of Service/ FAQ / Privacy Policy
alm.comCopyright © 2020 ALM Media Properties, LLC. All Rights Reserved.
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