Not long ago, we wrote about a run-of-the-mill fee dispute in which Quinn Emanuel was involved. This time, they’re having client problems on the conflicts side.
This time, the firm has been kicked off a case because of an unwaivable, uncurable conflict. That’s after 18 attorneys spent over 6,000 hours representing Marvell Semiconductors in a trade-secrets dispute with Jasmine Networks.
The trouble started with Quinn Emanuel’s hiring of Robert Feldman (SUNY Buffalo BA ’72, Columbia JD ’75), who had previously been the head of litigation at Wilson Sonsini. Although not involved in the case any more, the firm filed the original complaint for Jasmine. Feldman wasn’t on the trial team, but as head of the department, his colleagues conferred with him on strategy.
Somehow, Quinn Emanuel didn’t discover the conflict when the firm was retained by Marvell (which “famously goes through lawyers like socks”) in October. Feldman claimed not to have represented Jasmine and that he didn’t have “any confidential information material to the lawsuit.” Jasmine moved to disqualify, so QE went and got an opinion from ethicist Charles Wolfram, who cleared the matter.
Then Jasmine busted out timesheets that showed the Wilson Sonsini lawyers had met with Feldman. Game over. Quinn filed an emergency motion, which was denied. The case has been stayed so new counsel Latham & Watkins can get up to speed.
Oh, and the case was already plenty interesting: Marvell’s GC called the Jasmine GC several years ago. It went straight to voicemail. He didn’t hang up when he thought he did, and had a conversation with his colleagues about purloining Jasmine’s IP. The whole thing was recorded. Woops.
What is going on in the client-relations department at QE? They can’t get bills right or run conflicts checks?
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{ 6 comments… read them below or add one }
Quinn is one tough cookie, and for them not to either figure out a way around this or deal with it up front means that heads are goign to role. Who knows how many associates will lose their jobs because of this.
No doubt. Assuming a blended rate of even $400/hr, that's $2.4 million. Even if they somehow got paid (under quantum meruit or some other theory), they'd just end up reimbursing the client for the expense of bringing Latham & Watkins up to speed.
It also significantly impairs the value of the Feldman hire. If this guy is so toxic that they're going to lose every matter on which WSGR worked (even if he claims he personally did nothing), he's probably costing the firm a lot more than he's worth.
Quinn is one tough cookie, and for them not to either figure out a way around this or deal with it up front means that heads are goign to role. Who knows how many associates will lose their jobs because of this.
No doubt. Assuming a blended rate of even $400/hr, that's $2.4 million. Even if they somehow got paid (under quantum meruit or some other theory), they'd just end up reimbursing the client for the expense of bringing Latham & Watkins up to speed.
It also significantly impairs the value of the Feldman hire. If this guy is so toxic that they're going to lose every matter on which WSGR worked (even if he claims he personally did nothing), he's probably costing the firm a lot more than he's worth.
Good point LS – this is a great summary. And firms are so desparate for fees these days, they're willing to compromise themselves on ethics/conflicts.
Good point LS – this is a great summary. And firms are so desparate for fees these days, they're willing to compromise themselves on ethics/conflicts.