Kutak Rock attorneys Sarah Elsden, Geana Van Dessel, Lesley Gangelhoff,  and Danielle Wolf recently secured a significant victory on behalf of the firm’s client, Lee & Hayes PC, a national top-tier intellectual property firm, in a closely watched multi-million dollar contingency fee dispute between Lee & Hayes and its former client, a composite 3D manufacturing company in Coeur d’Alene, Idaho.

The case stems from Lee & Hayes’ representation of its former client under a contingency fee agreement in a patent infringement lawsuit where the IP firm successfully landed a hefty $17,341,310 jury verdict for its client. After its client refused to pay the contingency legal fee, Kutak Rock filed suit for Lee & Hayes in federal court.

In its 30-page decision, the United States District Court for the Eastern District of Washington found in favor of Lee & Hayes on its contract claim, finding its former client liable for breach of the parties’ multi-million-dollar contingency agreement, reserving damages, including pre- and post-judgment interest, for trial. The Court also denied the former client’s separate summary judgment motion which alleged the parties had modified the terms of the agreement. Kutak Rock argued the agreement was not modified for lack of legal consideration and mutual assent. The Court agreed.

Seasoned litigation partners Sarah Elsden and Geana Van Dessel and associates Lesley Gangelhoff and Danielle Wolf secured the win for Lee & Hayes. “This case is particularly meaningful to us because Geana and I spent many years practicing law with Lee & Hayes before joining Kutak Rock. It continues to be a privilege to represent such brilliant, benevolent professionals. The decision marks a significant victory for Lee & Hayes,” says attorney Elsden.

Lee & Hayes CEO Rob Hartman expressed gratitude that the “Court carefully considered the record and reached a just result. Filing a case against a former client for failure to pay is not something we take lightly. However, Sarah, Geana, Lesley and the entire Kutak Rock team guided us through this difficult process with incredible care, thoughtfulness, and fortitude. Their abilities, expertise and, most importantly, their character are beyond exceptional. We are grateful for the opportunity to work with people we respect so immensely.