SCOTX Refuses to Reconsider Patent Company’s Request to Vacate Arbitrator’s $3 Million Legal Fees Award

Disputing Blog by Karl Bayer, Victoria VanBuren, and Holly Hayes

The Supreme Court of Texas has once again declined to consider a company’s request to vacate an arbitrator’s award in a legal fees dispute.  In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-0080, Jenner & Block was retained to represent a patent-holding company in a patent enforcement action that was filed against software giant Oracle.  The contingent fee relationship, however, did not continue through to the conclusion of the case.

After losing a motion for summary judgment, the law firm reportedly determined that Parallel Networks was unlikely to win a large financial award and withdrew from representing the company. The parties’ representation agreement stated any disputes over attorney fees would be subject to arbitration.

With the assistance of new counsel, Parallel Networks later settled the disagreement with Oracle for $20 million. After the case settled, Jenner & Block sought in excess of $10 million in attorney fees from Parallel Networks for the work previously performed by the firm. Pursuant to the parties’ representation agreement, the fee dispute was arbitrated and Jenner & Block received a $3 million award.

Following arbitration, Parallel Networks filed an unsuccessful motion to vacate the arbitrator’s award in Dallas County.  Texas’ Fifth District Court of Appeals agreed with the trial court and the patent-holding company filed a petition for review with the Supreme Court of Texas citing public policy grounds. Last June, the high court denied Parallel Network’s petition.  Two months later, the company gave it one more try and filed a motion for rehearing of its denied petition for review.  On January 20th, the Texas Supreme Court once again denied Parallel Network’s request.

                        author

Beth Graham

Beth Graham received a J.D. from the University of Nebraska College of Law in 2004 and a M.A. in Information Science and Learning Technologies from the University of Missouri in 2006. She also holds a B.S. in Public Administration from the University of Nebraska-Omaha. She is licensed to practice law… MORE >

Featured Mediators

ad
View all

Read these next

Category

Jazz Improves Physician-Patient Communication

The American Medical News published this week Jazz offers lessons for doctor-patient interaction. This article discusses the use of jazz music to help physicians hone their patient communication skills. Dr....

By Holly Hayes
Category

10,000 Boomers A Day Do Not Go Gently Into Retirement

Even before the recession I was asking anyone within shouting distance just exactly what the country was going to do when the largely bankrupt baby boom became the largest impoverished...

By Victoria Pynchon
Category

Truly Constructive Conflict

Two Minute Trainings by Maria SimpsonA friend and I were talking about how different people work and how their different ways of focusing on a problem can lead to new...

By Maria Simpson

Find a Mediator

X
X
X