Hearing Scheduled for October 24, 2011, With Unpaid Fees Being The Catalyst.
This is “the gift that keeps on giving.”
The latest in the MGA Entertainment-Mattel litigation, aside from Mattel’s likely upcoming appeal, is that Orrick, Herrington & Sutcliffe (MGA’s law firm in the case) has moved to withdraw from representing MGA, citing $3.5 million in unpaid legal fees and expenses. Orrick claims that MGA failed to meet its interim agreement to pay a fixed monthly amount of $550,000 beginning December 2010 and to turn over certain insurance proceeds, with Orrick stating that this interim agreement was breached. MGA, in turn, has stated that it already has paid Orrick more than $35 million in fees to date and its resources have been severely depleted from the Mattel litigation struggle. Over $20 million might be the final fee tally owed, according to Orrick in its withdrawal papers. The hearing on the withdrawal motion has been scheduled for October 24 of this year.
MGA has filed an arbitration action against Orrick, seeking more than $10 million.
As if all this was not enough, O’Melveny & Myers has sued MGA for $10.2 million in unpaid fees, with San Francisco and Orange County lawyers involved in the litigation over fees.
More details can be found in Amanda Bronstad’s September 27, 2011 article in The National Law Journal.
The gift that keeps on giving the whole year round . . . .