WASHINGTON (Legal Newsline) - Mass tort lawyers want a deeper commitment from their business partners and are going to court to get it.
The District of Columbia firm LawCo USA sued New Orleans' Cooper Law Firm last year in D.C. Superior Court, and the defendant removed the case to D.C. federal court on Feb. 1. The suit says despite an agreement to pursue hernia mesh implant cases together, Cooper has failed to open a joint bank account.
"Defendant's blatant refusal to assist in establishing the joint bank account is a material breach to the agreement," the suit says.
LawCo says it is trying to prevent Cooper from depositing funds from their business venture in a separate account. The agreement at issue was entered into in August 2018, the suit says, to represent potential claimants in lawsuits against the makers and distributors of hernia mesh implants, as well as sales representatives who promoted their usage.
Section 6.4 agreement says the two shall "establish a bank account in the joint name of CLF and LawCo" to be used exclusively for finances for hernia mesh cases.
It took three years before LawCo "began efforts" to establish the account, by sending a $100 check to Cooper. But in May 2022, security concerns led LawCo to find a different bank.
Nine days later, Cooper said it would return that $100 check and no longer agreed to open a joint account.
An email from Celeste Brustowicz, managing partner of Cooper Law, said the company was concerned LawCo did not have a Louisiana attorney, though it was authorized to do business there.
"Was the account ever set up before as described in the [Joint Prosecution Agreement]?" Brustowicz wrote. "I think not as I cannot see any evidence of it on my end. To me, that is another reason not to have the account as our course of conduct showed it was unnecessary.
"The settlement funds will come to CLF as counsel of record. CLF will prepare settlement statements to be approved by Lawco and Local counsel in advance of distribution."
LawCo administrator Richard Sackett responded: "Not acceptable. Cooper Laws failure to honor a long standing agreement which you have previously encouraged is the very reason why it is necessary."