Friendship Gone Wrong: 2 Houston Lawyers Battle Over Millions in Attorney Fees
The beginning of the end came about 2012, when the lawyers decided to start advertising for mass tort plaintiffs together, according to a petition filed in Harris County.
April 28, 2020 at 09:40 AM
4 minute read
Playing football and basketball together during law school sparked a close friendship between two Houston lawyers, but now an attorney fee spat has torn them apart.
The friendship started in 1995 and continued 20 years as Ralph Manginello and Truett Akin got together for pickup games, alleged Manginello in a new lawsuit. The beginning of the end came about 2012, when Manginello and Akin decided to start advertising for mass tort plaintiffs together, according to a petition filed in Harris County on Monday.
The case, Manginello v. Akin, also names Akin's partner, Michelle Mears, and his firm, AkinMears, as defendants. The original petition explained that AkinMears is a mass tort firm that represents thousands of plaintiffs and advertises heavily in for litigation over transvaginal mesh devices, mesothelioma, many types of pharmaceuticals and more.
The dispute centers on an agreement involving Manginello investing some money into advertising for transvaginal mesh cases, expecting a percentage of attorney fees in return, and claiming that the defendants shortchanged him.
"I want him to live up to the agreement. If what I have been paid is fair, then that is fine, but I want to know. I highly doubt that it is, but let's see," said Manginello, a Houston solo practitioner who is representing himself in the lawsuit.
On the other side, though, the defendants claim that they paid Manginello everything that they owe him, and he got a good return on investment, said an email by Akin. He said Manginello was unfamiliar with mass tort litigation and wanted to learn more.
"AkinMears consistently warned Mr. Manginello about the inherent risks, duration and uncertainty of mass tort litigation," said Akin. "We are confident that the trial court, or arbitration panel, will vindicate AkinMears."
Manginello's petition claimed that in 2012, he invested $100,000 into advertisements, marketing and acquisition of transvaginal mesh cases, and he expected to get 25% of attorney fees in return. He estimated that his portion would be $2.86 million, based on a message from a firm employee who said there were 350 cases each worth $150,000.
He claimed that communication from the firm about cases started breaking down in 2013.
Starting in 2015, checks ranging from several hundred dollars up to $16,000 started trickling in as Manginello would ask about whether money had come in on the cases. The firm wasn't forthcoming as settlement money came in, he claimed. Also, the amounts were lower than he expected.
Around 2018, he asked over and over for an accounting of the cases, the total number of cases, funds the firm had received and more. He claimed that the accounting never came.
"Ralph was certain he was dealing with someone that was essentially stealing from him," the petition said.
By August 2018, his records showed he had gotten just $130,000, but the firm claimed it had paid him $175,500.
"Ralph knew there was no way Truett and his firm had only made $700,000 in the seven years since they had been acquiring cases together," the petition said.
But Akin told Texas Lawyer a different story in an email, in response to a request for comment.
He wrote that Manginello invested just $65,000 in ads, and that the firm had returned $35,000 to him. Akin said that his firm loaned some money to Manginello, who said "that he was cash strapped and despondent." Now, the firm will ask him to return all loans and advances that he received, Akin wrote.
He added, "It is unfortunate that Mr. Manginello filed this sensational lawsuit rather than pick up the phone, and without regard to a binding arbitration clause."
Read the full petition:
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