ARWA & CHANGE ADVOCATES LLP v. Smith LaCien LLP

CourtDistrict Court, N.D. Illinois
DecidedJuly 1, 2025
Docket1:24-cv-06620
StatusUnknown

This text of ARWA & CHANGE ADVOCATES LLP v. Smith LaCien LLP (ARWA & CHANGE ADVOCATES LLP v. Smith LaCien LLP) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ARWA & CHANGE ADVOCATES LLP v. Smith LaCien LLP, (N.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

ARWA & CHANGE ADVOCATES LLP and JAPHETH CHANGE,

Plaintiffs, Case No. 24 CV 6620 v. Judge Georgia N. Alexakis SMITH LACIEN LLP, TODD A. SMITH, and JOHN R. STORINO,

Defendants.

MEMORANDUM OPINION AND ORDER Plaintiffs Arwa & Change Advocates LLP and Japheth Change bring this suit against defendants Smith LaCien LLP, Todd A. Smith, and John R. Storino, alleging that they are owed a share of the contingency fees stemming from a shared client’s settlement agreement. They bring various state-law causes of action as well as claims under 42 U.S.C § 1981, 42 U.S.C § 1985, and the Kenyan Constitution. Defendants have moved to dismiss plaintiffs’ complaint in its entirety. For the reasons discussed, the Court grants defendants’ motions to dismiss. LEGAL STANDARD To survive a Rule 12(b)(6) motion to dismiss, a complaint must contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). A complaint need only contain factual allegations that, accepted as true, are sufficient to “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). The allegations “must be enough to

raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555. At the pleading stage, the Court must “accept all well-pleaded factual allegations as true and view them in the light most favorable to the plaintiff,” as it does in the background section that follows. Lavalais v. Vill. of Melrose Park, 734 F.3d 629, 632 (7th Cir. 2013). But “allegations in the form of legal conclusions are insufficient.” McReynolds v. Merrill Lynch & Co., 694 F.3d 873, 885 (7th Cir. 2012). “Threadbare recitals of the elements of a cause of action, supported by mere

conclusory statements, do not suffice.” Iqbal, 556 U.S. at 678. BACKGROUND On March 10, 2019, Ethiopian Airlines Flight ET 302 crashed shortly after takeoff, killing all 157 people on board. [57] ¶ 9. One victim was Florence Wangari Yongi. Id. Her father, Francis Yongi Muturi (“Muturi”) retained two law firms to help him sue the Boeing Company (“Boeing”), which manufactured the plane. Id. ¶¶ 4, 10,

12–13. The first firm, Arwa & Change Advocates LLP (“ACA”), was based in Nairobi, Kenya. Id. ¶¶ 4, 10. The second firm, Power Rogers & Smith LLP (“Power Rogers”), was based here in Chicago, where Boeing maintained its headquarters. Id. ¶¶ 12–13. In June 2019, Muturi, ACA, and Power Rogers entered into a contingency fee arrangement under which the two firms would file suit against Boeing on Muturi’s behalf and, in exchange, the firms would equally split 28% of the gross amount Muturi recovered. Id. ¶¶ 13–15. In addition to attorneys’ fees, Muturi also agreed to reimburse the firms for any “reasonable, ordinary, and necessary expenses and costs [they incurred] in the preparation and prosecution of the suit.” Id. ¶ 14.

On June 12, 2019, Power Rogers filed suit against Boeing on Muturi’s behalf in the U.S. District Court for the Northern District of Illinois (“Wrongful Death Suit”). Id. ¶ 16. About a year after filing suit, defendant Todd Smith left Power Rogers and started a new firm called Smith LaCien LLP. Id. ¶ 17. After Smith’s move, Muturi discharged Power Rogers as counsel and retained Smith LaCien. Id. In July 2020, Muturi, ACA, and Smith LaCien entered into a new agreement with the same terms as the previous agreement with Power Rogers: ACA and Smith LaCien would

prosecute the suit against Boeing in exchange for 28% of the eventual recovery, to be split equally between the two firms (“July 2020 Agreement”). Id. ¶¶ 18–20. In June 2021, ACA and Muturi entered into a second agreement (“Compensation Fund Agreement”) providing that ACA would represent Muturi in obtaining a share of the compensation fund that arose from the government’s criminal prosecution of Boeing. Id. ¶ 37; see also [57-3]. ACA says it “fully performed its

obligations under [the Compensation Fund Agreement] and safely delivered Mr. Muturi’s share of funds to him on or about August 25, 2021.” [57] ¶ 37. ACA’s representation of Muturi ended on February 14, 2022. Id. ¶¶ 21, 39. By that date, “ACA had expended more than 2,470 hours in the case and incurred expenses related to its representation.” Id. ¶ 23. This included “extensive legal research,” “numerous meetings and discussions” with Muturi and co-counsel, “extensive settlement discussions,” and “[p]rovid[ing] legal advice to Mr. Muturi on other non-litigation matters.” Id. ¶ 21. ACA had also participated in a virtual mediation session before a retired judge during which Muturi declined a $5 million

offer from Boeing. Id. ¶ 22. Around the time Muturi split with ACA, Smith LaCien hired defendant John Storino, a partner at the law firm Jenner & Block LLP (“Jenner”), “to help it manage its relationship with ACA and Mr. Muturi.” Id. ¶ 55; see also id. ¶ 7. In February 2023, around a year after the relationship between ACA and Muturi ended, Muturi’s suit against Boeing settled for an amount ACA believes exceeded $6 million. Id. ¶ 24. Plaintiffs contacted Smith and Smith LaCien in

November 2023 to obtain what they believed was their share of the settlement money. Id. ¶ 30. Plaintiffs allege that, in response, “Storino asked ACA to provide him with a statement indicating how much money it believed it was owed and promised that Smith and [Smith LaCien] would pay.” Id. After ACA did so, plaintiffs say Smith and Smith LaCien “have refused to pay any portion of the amount” they received from the settlement. Id. ¶ 33.

In July 2024, plaintiffs filed a six-count complaint against Smith LaCien, Smith, Storino, and Jenner, bringing various state-law causes of action. See generally [1]. In response to defendants’ subsequent motions to dismiss, [18]; [21], plaintiffs filed an amended complaint in October 2024, [29]. Defendants moved to dismiss the amended complaint, [38]; [41], and plaintiffs again amended their complaint before the Court ruled on defendants’ motions, [57]. The second amended complaint brings 10 counts: (1) breach of implied contract against Smith and Smith LaCien; (2) breach of fiduciary duty against Smith LaCien; (3) tortious interference with prospective economic advantage against Smith and Smith LaCien; (4) tortious interference with

prospective economic advantage against Storino; (5) unjust enrichment against Smith and Smith LaCien; (6) adjudication of equitable lien against Smith and Smith LaCien; (7) violation of 42 U.S.C § 1981 against all defendants; (8) violation of 42 U.S.C. § 1985(2) against Jenner, Storino, and Smith; (9) malicious arrest, detention, and prosecution against Smith LaCien; and (10) violation of the Kenyan Constitution against Smith and Smith LaCien. See generally [57].

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ARWA & CHANGE ADVOCATES LLP v. Smith LaCien LLP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arwa-change-advocates-llp-v-smith-lacien-llp-ilnd-2025.