George Washington is seen with printed medical mask on the one Dollar banknotes in this illustration taken, March 31, 2020. REUTERS/Dado RuvicRegister now for FREE unlimited access to Reuters.comSummaryLaw firmsD.C.-based firm represented ViaClean on IP, regulatory mattersCrowell, client agreed to alternative fee arrangement -complaint(Reuters) - Law firm Crowell & Moring has sued former biotech client ViaClean Technologies LLC to recover more than $2.2 million in legal fees, in a lawsuit that alleged the company fell behind last year amid cashflow problems tied to the COVID-19 pandemic.Crowell represented Philadelphia-based ViaClean on regulatory issues and intellectual property disputes from 2020 until earlier this year, according to the firm's complaint filed on July 29 in District of Columbia Superior Court.A judge on Monday set an initial hearing for October.Register now for FREE unlimited access to Reuters.comIn one matter, according to the complaint, a team from Washington, D.C.-based Crowell argued for ViaClean, developer of antimicrobial products, in a patent infringement lawsuit in Texas federal court against a competitor.The firm said ViaClean approved a proposed $3.8 million budget to take the dispute through trial. The case was resolved in the pretrial stages earlier this year but the terms were not disclosed publicly.ViaClean did not immediately respond to messages seeking comment. An attorney had not yet entered an appearance in the case.In its lawsuit, Crowell said it "complied with all of its obligations" to ViaClean, and that it "achieved very favorable resolutions of four significant litigations for ViaClean and successfully completed all other engagements."Crowell attorneys Clifton Elgarten and George Ruttinger, the firm's deputy general counsel, did not immediately return a message on Wednesday seeking comment.The firm's work for ViaClean also included helping the company respond to inquiries from the U.S. Environmental Protection Agency about pesticide products.ViaClean, according to Crowell, had made timely payments for legal services up until early 2021.Crowell's complaint said the firm entered into an "alternative fee arrangement" after ViaClean indicated in February 2021 it was experiencing financial issues stemming from the COVID-19 pandemic.The agreement included a 30% discount from standard hourly rates, and a $25,000 minimum monthly payment to the law firm."ViaClean fell behind on its minimum monthly payments to Crowell & Moring, and eventually stopped making payments entirely," the firm's lawsuit said.The case is Crowell & Moring v. ViaClean Technologies Inc, D.C. Superior Court, Case No. 2022-CA-003345-B.For plaintiff: George Ruttinger and Clifton Elgarten of CrowellFor defendant: No appearance yetRead more:Netflix is owed attorneys' fees from court-hopping patent plaintiff, U.S. court affirmsLaw firm Bartlit Beck wins $50 mln fee in appeal against Japanese billionaireEx-client wants $22 mln from Brown Rudnick, saying lawyers overbilledRegister now for FREE unlimited access to Reuters.comOur Standards: The Thomson Reuters Trust Principles.
Law firm Crowell sues for $2.2 mln in fees after biotech client's COVID shortfall.