Tech Accelerator Sues Jackson Walker Over Alleged Conflict in Vendor Deal
The Virginia-based National Security Technology Accelerator alleges that a Jackson Walker lawyer failed to mention she was also working for the organization on the other side of the vendor contract.
November 07, 2019 at 02:53 PM
3 minute read
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A Virginia technology accelerator is seeking more than $1 million from Jackson Walker and senior counsel Jennifer Bryant of Houston in a legal malpractice suit alleging that Bryant handled a vendor contract for the accelerator—which ultimately went south—when she also had close ties to the vendor.
Defense Energy Center of Excellence, which does business as National Security Technology Accelerator (NSTXL), alleged that Bryant failed to disclose that she was also representing TechConnect, a conference organizing program formed by a former NSTXL board member, Matt Laudon. The suit alleged that Jackson Walker was on both sides of the table in a deal NSTXL entered with TechConnect, and the firm failed to suggest that NXTSL should seek independent counsel.
According to the petition, Laudon is Bryant's nephew.
"Even though there was an inherent conflict of interest between Laudon and TechConnect on one hand and NSTXL on the other hand, the lawyers did not provide any disclosures regarding the joint representation," the accelerator alleged in the petition filed Wednesday in State District Court in Harris County.
NSTXL alleged that it signed an unfavorable contract with TechConnect, which led to costly litigation in 2018, and that it would not have done so if it knew about Jackson Walker's representation of the organization.
Wade Cooper, managing partner of Dallas-based Jackson Walker, declined to comment on the petition, saying the firm had not seen it.
Bryant did not immediately respond to a call seeking comment.
According to the petition in Defense Energy Center of Excellence v. Jackson Walker, Laudon, Tim Greeff and Joseph Kopser formed NSTXL in April 2014 to "connect" innovative technologies with government organizations including the Department of Defense. Laudon, Greeff and Kopser were board members of the company, but Laudon was removed from that position Jan. 23, 2018.
Laudon introduced Greeff and NSTXL to Bryant, the petition said, and NSTXL turned to Bryant and Jackson Walker for a number of legal needs, including structuring vendor agreements, employment agreements, and loan agreement between NSTXL and TechConnect.
"More importantly, however, the lawyers prepared the vendor agreement between NSTXL and TechConnect on behalf of both parties, billing NSTXL for more than eight hours of time for their work on the agreement," the petition alleged.
In addition to the conflict, NSTXL alleged that Bryant drafted the agreements between TechConnect and Laudon and NSTXL in a way that "significantly favored" Laudon, who is Bryant's nephew.
TechConnect sued NSTXL in 2018, alleging NSTXL had breached the vendor contract in part by attempting to terminate it, and Bryant is representing TechConnect in that suit. That suit had been set for trial in January 2020 in state court, but NSTXL removed it to federal court in October.
"Due to this egregious conflict of interest, NSTXL has suffered damages and/or the lawyers have obtained wrongful benefits," the plaintiff alleged.
NSTXL has alleged negligence, breach of fiduciary duty and conversion causes of action, and is seeking actual and exemplary damages. The suit also argued that Jackson Walker and Bryant should be required to forfeit all of the fees it received from NSTXL, as well as the attorney fees it received from TechConnect and Laudon.
Plaintiffs attorney Lance Kassab, of Kassab Law Firm of Houston, declined comment.
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