Barnes Claims Cellino Attempted to Steal Proprietary Information
In further developments in the messy breakup of the heavily advertised personal injury firm, Stephen Barnes claims in an affidavit that partner Ross Cellino got a former Cellino & Barnes employee who now works for a competitor to steal proprietary information and transfer it to Cellino's new website.
November 28, 2017 at 03:10 PM
11 minute read
Pictured from left, Ross Cellino Jr. and Stephen Barnes.
The bitter court battle to dissolve Buffalo-based firm Cellino & Barnes continues amid allegations that one of the name partners at the personal injury firm solicited an employee of a competitor to “hack” and “steal proprietary information.”
In an affidavit filed last week in Erie County Supreme Court, Stephen Barnes claims that partner Ross Cellino contacted a former Cellino & Barnes employee in charge of social media for the firm who now works for a “major competitor” to “steal proprietary information and transfer said information to his new 'Cellino & Cellino' firm website.” No further details about the alleged hacking were provided in the affidavit.
According to an affidavit filed by the former Cellino & Barnes employee allegedly solicited to do the alleged theft, Cellino told him that he wanted to “burn Cellino & Barnes to the ground.”
Barnes in an affidavit filed Nov. 22 alleges that the statement demonstrated Cellino's “bad faith.”
The acrimonious breakup between the law partners began in May when Cellino filed a lawsuit against Barnes and the law firm—which is well-known in New York and California for its catchy jingle and ad campaigns—seeking to dissolve the 25-year partnership.
Last week's court filings come roughly a month after Cellino asked Erie County Supreme Court Justice Deborah Chimes to appoint a receiver to oversee the law firm's finances amid allegations of financial impropriety on Barnes' behalf.
In the affidavit, Barnes claims that 2017 “has been the most successful year in the history of the firm—record revenues, record profits, more new cases coming into the firm than any year prior, and record high attorney earnings.” He said that each shareholder is expected to make $12 million this year, and “If we stay the course, each shareholder is virtually guaranteed to continue to make an eight-figure income for the remainder of his career.”
Barnes maintains that since Cellino filed the lawsuit to dissolve the partnership, the firm has continued to “function effectively and successfully.”
According to Barnes' affidavit, the personal injury firm achieved a mass torts settlement of $5 million, attorney earnings are at a record high so far and the principals of the firm have distributed profits of $10 million each since the year began, including $5.5 million since May. If a receiver were to be appointed to oversee the firm's finances, Cellino & Barnes' reputation “will be harmed in the eyes of the public—including in the eyes of clients—because the appointment of a receiver implies mismanagement (or worse),” Barnes said in court records.
Appointing an independent receiver could threaten the confidentiality of client information and employee morale “will be damaged by questioning the validity of the firm management over the past several years,” Barnes claims in the court documents.
Terrence Connors, the name partner of Connors LLP in Buffalo, who is representing Cellino, told the New York Law Journal on Tuesday that the “latest filings confirm what we have said from the very beginning: It is time for Steve and Ross to go their separate ways.”
Another round of court records is expected to be filed by Cellino and his attorney tomorrow, Connors added.
Barnes and the law firm are represented by Buffalo-based Duke, Holzman, Photiadis & Gresens and Lipsitz Green Scime Cambria.
In a memorandum of law filed by the attorneys for Barnes and Cellino & Barnes, the lawyers argue that Cellino lacks “any basis” to have a temporary receiver appointed.
“Cellino's complete lack of any basis to bring the instant motion is further evidence that he only seeks to benefit himself rather than the shareholders as a whole,” Gregory Photiadis of Duke, Holzman, Photiadis & Gresen wrote.
Lawyers for both Cellino and Barnes are slated to go back to court on Dec. 6, where motions for summary judgment and the receivership will be argued.
Pictured from left, Ross Cellino Jr. and Stephen Barnes.
The bitter court battle to dissolve Buffalo-based firm
In an affidavit filed last week in Erie County Supreme Court, Stephen Barnes claims that partner Ross Cellino contacted a former
According to an affidavit filed by the former
Barnes in an affidavit filed Nov. 22 alleges that the statement demonstrated Cellino's “bad faith.”
The acrimonious breakup between the law partners began in May when Cellino filed a lawsuit against Barnes and the law firm—which is well-known in
Last week's court filings come roughly a month after Cellino asked Erie County Supreme Court Justice
In the affidavit, Barnes claims that 2017 “has been the most successful year in the history of the firm—record revenues, record profits, more new cases coming into the firm than any year prior, and record high attorney earnings.” He said that each shareholder is expected to make $12 million this year, and “If we stay the course, each shareholder is virtually guaranteed to continue to make an eight-figure income for the remainder of his career.”
Barnes maintains that since Cellino filed the lawsuit to dissolve the partnership, the firm has continued to “function effectively and successfully.”
According to Barnes' affidavit, the personal injury firm achieved a mass torts settlement of $5 million, attorney earnings are at a record high so far and the principals of the firm have distributed profits of $10 million each since the year began, including $5.5 million since May. If a receiver were to be appointed to oversee the firm's finances,
Appointing an independent receiver could threaten the confidentiality of client information and employee morale “will be damaged by questioning the validity of the firm management over the past several years,” Barnes claims in the court documents.
Terrence Connors, the name partner of Connors LLP in Buffalo, who is representing Cellino, told the
Another round of court records is expected to be filed by Cellino and his attorney tomorrow, Connors added.
Barnes and the law firm are represented by Buffalo-based
In a memorandum of law filed by the attorneys for Barnes and
“Cellino's complete lack of any basis to bring the instant motion is further evidence that he only seeks to benefit himself rather than the shareholders as a whole,” Gregory Photiadis of Duke, Holzman, Photiadis & Gresen wrote.
Lawyers for both
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