CHICAGO (Legal Newsline) - An entertainment company’s alleged failure pay its law firm led to the filing of a lawsuit in U.S. District Court for the Northern District of Illinois.
Jackson Lewis P.C. took its issue to the court on May 2, suing Stephen Lipptz (a/k/a Lippitz) and LZ Entertainment.
Jackson Lewis is suing for actual fraudulent conveyance, constructive fraudulent conveyance, violation of the Illinois Limited Liability Company Act, and breach of fiduciary duty.
LZ and Jackson Lewis' legal history actually began when LZ retained Lewis to represent it in a lawsuit from Accel Entertainment Gaming over a non-compete and non-solicitation contract. LZ paid Lewis $80,000, but that was its first and last payment, the suit claims.
LZ filed suit against Lewis for legal malpractice, alleging that it gave the wrong advice for contract negotiations. Jackson Lewis won summary judgment and was awarded $328,730.01, which LZ allegedly couldn’t pay, leading to the lawsuit.
“LZ became insolvent and was unable to pay Jackson Lewis the amounts it owed under judgment,” the lawsuit claims. Lewis sued with hopes of getting the money owed, while LZ said the company had dissolved and didn’t own any assets.