X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DECISION AND ORDER   Plaintiff Olshan Frome Wolosky LLP (“Olshan”) filed this lawsuit to recover unpaid legal fees. Defendants now move for dismissal pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim, and, with respect to Hover Energy, LLC (“Hover”), 12(b)(2) for lack of personal jurisdiction. Defendant McLelland additionally seeks payment of ten thousand dollars in attorneys’ fees if his motion is granted. For the reasons that follow, the Defendants’ motions are DENIED. Factual Background1 Olshan is a law firm based in New York City. (Second Amended Complaint (“Compl.”), Dkt. 49, 5.) Pantheon is a Delaware limited liability company, the four individual members of which are Defendants Albert McLelland (“McClelland”), Gentry Beach (“Beach”), and Elizabeth and Eric Schick (the “Schicks”), all of whom reside in Texas. (Compl. 8.) Hover is a Delaware limited liability company located in Texas. (Compl. 13.) Pantheon owns a controlling interest in Hover, and the two companies share overlapping directors and executives. (Compl. 16.) For example, McLelland was the former Chief Executive Officer (“CEO”) of both Pantheon and Hover. (Compl. 15.) In March 2015, Defendants McLelland, Beach, and the Schicks (collectively, the “Individual Defendants”), retained Olshan to provide corporate legal services, including the formation of Pantheon.2 (Compl. 20.) During the parties’ engagement, Olshan performed work not only for Pantheon but also for Hover at McLelland’s direction. (Compl. 29.) The Individual Defendants signed Olshan’s standard engagement letter (the “Engagement Letter”), which provided that Olshan was to be compensated at the designated attorney rates and for out-of-pocket expenses. (Compl. 21.) The Engagement Letter indicated that the persons responsible for paying Olshan’s fees depended on the “reasonable capitalization” of Pantheon. Specifically, each of the Individual Defendants agreed, in relevant part, that, “Until the reasonable capitalization of Pantheon[,] I shall be responsible for the payment of fees and disbursements incurred in accordance with the terms of this letter of engagement and its accompanying memorandum. Unless otherwise agreed in writing, each of us is separately, jointly and severally responsible for the full payment of Olshan’s invoices.” (Compl. 24.) Pantheon (and Hover) were not reasonably capitalized. (Compl. 32.) The Engagement Letter imposed a late charge of one percent per month for failure to pay any statement within thirty days, and provided that the prevailing party in any litigation would receive reasonable attorneys’ fees and costs. (Compl.

25-26.) Olshan regularly billed Defendants for its services. At no time did any of the Defendants dispute or even question the fees and expenses charged, or the quality of Olshan’s services. (Compl. 31.) An amount of $204,239.00 remains due and owing to Olshan for its services to Defendants, including legal work performed for the benefit of Hover. (Compl. 33.) On or about October 28, 2019, Defendant Erik Schick confirmed, without objection, that Pantheon and its members had received Olshan’s statement of account. (Compl. 34.) Procedural History Olshan filed its initial complaint on March 9, 2020 (Dkt. 1), and the currently operative Complaint on June 26, 2020 (Dkt. 49). Olshan asserts four causes of action: breach of contract and account stated against all Defendants except Hover, and unjust enrichment and quantum meruit against all Defendants. (Compl.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More

Experienced Insurance Defense Attorney.No in office requirement.Send resume to:


Apply Now ›

Role TitleAssociate General Counsel, Global EmploymentGrade F13Reporting ToSenior Legal Counsel, Global EmploymentProgram/Tool/ Department/U...


Apply Now ›

Ryan & Conlon, LLP, is a boutique firm specializing in insurance defense. We are a small eclectic practice with a busy and fast paced en...


Apply Now ›