Greenspoon Marder Sued Over Unpaid $471K Bill for Document Storage
The complaint claims Joel Sanders, the convicted ex-Dewey & LeBoeuf executive who became Greenspoon's chief operating officer, "promised" to make things right but the firm went back on its word.
May 02, 2019 at 06:21 PM
2 minute read
The original version of this story was published on New York Law Journal
A New Jersey-based document storage company is suing Florida-based Greenspoon Marder in New York, claiming the law firm has refused to pick up its documents or pay $471,000 in bills.
Cityside Archives said it had long done business with Jacob Medinger & Finnegan, a nine-lawyer firm acquired by Greenspoon in 2016, and continued to move Greenspoon's files in and out of storage at its request after the tie-up. After 22 months, however, Greenspoon stopped paying its bills, the suit claims.
The complaint said Joel Sanders, the convicted ex-Dewey & LeBoeuf executive who became Greenspoon's chief operating officer and was released from jail on the law firm's dime, “promised” to make things right last September. Greenspoon subsequently paid some 2018 bills, but it is now saying only Jacob Medinger, which no longer exists, can be held liable to Cityside, the complaint said.
“Despite paying invoices for nearly two years and making multiple requests to Cityside in connection with the stored materials, it had not assumed the agreement” signed by Jacob Medinger, the complaint said.
Cityside Archives, which is represented by Orloff, Lowenbach, Stifelman & Siegel, said in a January letter to Greenspoon that it must pick up its records by Feb. 28 and they would be destroyed starting April 15, according to court records. In the complaint, Cityside said it still had 10,000 of Greenspoon's boxes in its inventory April 4.
The complaint seeks a declaration that Greenspoon is bound by the Jacob Medinger contract, breached the contract and violated various state-law obligations. The storage company said Greenspoon owes over $471,000.
Greenspoon said in a letter included as an exhibit that it would “vigorously defend any lawsuit.” Michelle Martinez Reyes, Greenspoon's chief marketing officer, declined to comment.
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