DALLAS (Legal Newsline) - Personal injury lawyers are fighting over a funding agreement and whether one of them failed to live up to its terms.
Bradley Egenberg of Egenberg APLC loaned $100,000 to Charles Bennett Law to find clients and help with their cases, documents filed in a Dallas state court in November say. But Bennett argues Egenberg never helped with litigation and isn't entitled to the 15% of the fees generated the agreement stipulated.
Egenberg has asked to start an arbitration proceeding to recover those fees. Bennett has filed for an injunction against the arbitration.
Egenberg has removed the injunction request to federal court in Dallas.
"Mr. Egenberg failed to participate in any way in any litigation matters involving CBL and has no written agreements for any fee shares on any cases involving CBL with any of CBL's clients," Bennett wrote.
"Despite Mr. Egenberg's failures to comply with the written agreement to participate in litigation of certain matters, Mr. Egenberg has repeatedly demanded payments for fee shares... Mr. Egenberg apparently believes he is due a 15% fee share on all cases generated by CBL between Oct. 15, 2018, to July 15, 2019, as interest for the $100,000 loan."
Egenberg made $10,000 payments each month from October 2018 to July 2019. Bennett says he repaid that principal before the end of 2019.
Part of the loan agreement said Egenberg would "participate in the litigation of all matters originated by CBL" while the monthly loans were coming in. Bennett says that never happened and refuses to give up 15% of the fees those cases generated.
He also claims an arbitration provision in the agreement was unconscionable, citing a return on investment that would violate usury laws.
Egenberg's Dec. 13 removal to federal court says the amount at stake exceeds the $75,000 threshold for federal jurisdiction, despite Bennett's petition asking for less than $74,500.
Bennett's website says he represents clients in vehicle crash and workplace injury cases. The site of New Orleans-based Egenberg says he files property damage and personal injury cases.