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Thursday, May 2, 2024

Personal injury lawyers fight federal lawsuit over fees

Attorneys & Judges
12edited

LAS VEGAS (Legal Newsline) - It was inappropriate for a client to take his gripe with his personal injury lawyers to federal court, the firms are arguing.

Jesse Castillo sued The Patriot Law Firm and Battle Born Injury Lawyers in Nevada federal court over the percentage they seek to take from his medical malpractice lawsuit, which was filed in Nevada state court.

Castillo can't ask a federal judge to rule on the fee issue, the lawyers say, because it would interfere with the state court proceeding. They had filed a motion to adjudicate in state court as the sides argued as to whether the lawyers should receive the disputed funds from the malpractice settlement.

The amount up for grabs is $159,000 in fees and another $209,000 in cost. Castillo removed the motion to adjudicate to federal court.

"In essence, Plaintiff is seeking piecemeal litigation in an effort to circumvent the adjudication of Defendants' charging lien in the state court," a Nov. 3 motion to dismiss by the lawyers says.

It adds: "Importantly, the state District Judge's decision... will resolve all outstanding issues between the parties to this Declaratory Judgment action."

Castillo disputes the defendant law firms' attorney's fees and litigation cost calculation, alleging it violates Nevada law pertaining to fee agreements. 

He claims that in August of 2020, the State Bar of Nevada issued a disciplinary proceeding and found the contingency fee contract - which provided for 47% of the first $50,000 recovered, 33.3% of the next $50,000, 25% of the next $500,000 recovered and 15% of the amount of recovery that exceeds $600,000 - was a greater fee than allowed by Nevada law. 

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