US lawyer told to use arbitration in ex-firm compensation case

A California judge has ordered an ex-partner to resolve a compensation issue with his former practice through arbitration.

Seattle: home to Perkins Coie

The news agency Thompson Reuters reports that US District Judge Jeffrey White told Harold DeGraff that he is bound by an arbitration clause in his partnership agreement with the Seattle-based Perkins Coie.

Confidentiality

But a confidentiality provision in the agreement was not enforced as secrecy was deemed to have potentially benefited the firm at Mr DeGraff’s expense.
According to the report, Mr DeGraff’s attempts to keep the dispute in court failed on a number of issues, including his claim that a 90-day deadline in the arbitration process would hinder his case.‘[Mr DeGraff] has not demonstrated that these terms are ... overly harsh or generates one-sided results,’ Judge White ruled.
Mr DeGraff initially sued the firm earlier this year, claiming that Medicare, Social Security costs and other expenses were taken from his wages rather than covered by the firm. The suit had sought class action status on behalf of all lawyers who have worked or are working in Perkins Coie's California offices.

Unreasonable expenses

Elsewhere, a federal judge in Washington State has publically disciplined two lawyers for claiming ‘unreasonable expenses’ while handling a securities class action.

The National Law Journal reports that US District Judge Justin Quackenbush issued an order of reproval against Joy Bull – who resigned as a partner from San Diego-based Robbins Gellar Rudman & Dowd last week at the firm’s request – and a lesser sanction of admonition against John Grant – still a partner at the firm.

The issue arose after the two lawyers were lead counsel for a plumbers’ pension fund in a 2007 case against Washington-based Ambassadors Group.

The case was settled last year for $7.5 million, with the lawyers claiming $223,000 in expenses. They later revised the claim to $114,137 after Judge Quackenbush questioned the figure in May. This led to a closer inspection of expenses at the firm and the further disciplining of the two lawyers.

Donald Curran from Washington-based firm Delay Curran Thompson Pontarolo & Walker represented the firm in the sanctions matter. Mr Curran said: ‘The firm is very pleased with the judge's decision that exonerates them of any sanctions.’

Ms Bull and Mr Grant have so far declined to comment.

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