Lipton Law Center, P.C. v. Andrus Wagstaff, PC

CourtDistrict Court, E.D. Michigan
DecidedApril 24, 2024
Docket2:22-cv-11519
StatusUnknown

This text of Lipton Law Center, P.C. v. Andrus Wagstaff, PC (Lipton Law Center, P.C. v. Andrus Wagstaff, PC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lipton Law Center, P.C. v. Andrus Wagstaff, PC, (E.D. Mich. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

LIPTON LAW CENTER, P.C.,

Plaintiff, Case No. 22-cv-11519 v. Honorable Linda V. Parker

ANDRUS WAGSTAFF, P.C.,

Defendant. ____________________________/

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

This lawsuit arises from an agreement between Defendant Andrus Wagstaff, P.C. (“Wagstaff”) and Plaintiff Lipton Law Center, P.C. (“Lipton Law”). Pursuant to that agreement, Lipton Law served as Wagstaff’s local counsel in litigation related to Lawrence Nassar, a physician who sexually abused numerous athletes under the guise of providing medical care. Claiming that it is owed more for its services than it has been paid, Lipton Law initiated this action asserting the following counts: (I) breach of contract; (II) demand for accounting; (III) statutory conversion under Michigan Compiled Laws § 600.2919a; (IV) common law conversion; and (V) unjust enrichment/quantum meruit. (See ECF No. 10.) The matter is presently before the Court on Wagstaff’s motion for summary judgment pursuant to Federal Rule of Civil Procedure 56(c), which has been fully briefed. (ECF Nos. 34, 36, 37.) Finding the facts and legal arguments adequately presented in the parties’ filings, the Court is dispensing with oral argument pursuant to

Eastern District of Michigan Local Rule 7.1(f). I. Summary Judgment Standard Summary judgment pursuant to Rule 56 is appropriate “if the movant shows

that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The central inquiry is “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.”

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52 (1986). The movant has the initial burden of showing “the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Once

the movant meets this burden, “[t]he party opposing the motion must show that ‘there is a genuine issue for trial’ by pointing to evidence on which ‘a reasonable jury could return a verdict’ for that party.” Smith v. City of Toledo, 13 F.4th 508, 514 (6th Cir. 2021) (quoting Liberty Lobby, 477 U.S. at 248). The non-movant’s

evidence generally must be accepted as true and “all justifiable inferences” must be drawn in the non-movant’s favor. Liberty Lobby, 477 U.S. at 255. II. Factual Background Wagstaff is a Colorado law firm. (ECF No. 10 at PageID. 108, ¶ 8.) It

represented individuals who were sexually abused by Nassar, a physician employed at one time by Michigan State University (“MSU”). (ECF No. 34-1 at PageID. 490, ¶ 2.) Wagstaff intended to file lawsuits on behalf of several victims

in Michigan courts against Nassar, MSU, and organizations affiliated with Nassar and/or his victims during the sexual abuse, which included USA Gymnastics (“USAG”). Kimberly Dougherty, a lawyer associated with Wagstaff, needed an attorney

to act as local counsel with respect to the Michigan lawsuits, as she is not licensed in Michigan. Dougherty had met Marc Lipton of Lipton Law when the two were involved in multi-district litigation. (ECF No. 36-2 at PageID. 559, ¶ 1.) Lipton

Law is a Michigan law firm. The agreement between Wagstaff and Lipton Law (hereafter “Local Counsel Agreement”) was formed in a series of emails between Dougherty and Lipton on May 31, 2018. (ECF No. 36-3.) In those emails, Dougherty and Lipton wrote:

Dougherty: “Should we need local counsel on the MSU/Nassar cases, do you have any interest in assisting. No heavy lifting. I’ll handle everything, but need a MI barred atty for filing and getting me admitted PVH [sic] [pro hac vice]. Thoughts?”

Lipton: “Absolutely. Thanks.” Dougherty: “Great! What’s local counsel fee you would seek? Thanks!”

Lipton: “What’s reasonable? 10%?”

Dougherty: “I was thinking 5% because there would literally be nothing you would need to do other then file and get me admitted and the process will mostly be administrative as opposed to litigation. So is 5% of the net attorneys’ fees good with you?”

Lipton: “Sure; if we end up doing more than that, we will adjust. Deal?”

Dougherty: “Sounds good, thanks!”

(Id.) Dougherty subsequently prepared a complaint on behalf of 22 Jane Doe plaintiffs against MSU, the MSU Board of Trustees, Nassar, USAG, the United States Olympic Committee (“USOC”), Twistars USA, Inc., and several individuals associated with these entities which was filed in the District Court for the Western District of Michigan.1 See Compl., Jane L.B. Doe, et al. v. Mich. State Univ., et al., No. 18-cv-00987 (W.D. Mich. Aug. 31, 2018), ECF No. 1 (“Michigan Action”).

1 Lipton states in his affidavit that he filed 20 Wagstaff cases, and that the claims against MSU were filed in the court of claims and the claims against the remaining defendants were filed in the Western District of Michigan. (See ECF No. 36-2 at PageID. 560, ¶¶ 13-15.) A search of the Case Management Electronic Filing System for the District Court for the Western District of Michigan, however, reflects only the one Nassar-related case discussed infra listing Lipton Law or one of its lawyers as counsel, and that case was filed on behalf of 22 plaintiffs against MSU and others. The number of cases is not dispositive here, however. Several lawyers were listed on and signed the complaint filed in the Michigan Action, including Lipton and another Lipton Law attorney. See id.

Lipton Law thereafter sponsored Dougherty’s pro hac vice application. On December 5, 2018, USAG filed for bankruptcy in the Bankruptcy Court for the Southern District of Indiana (“Bankruptcy Action”). See Notice, id. (filed

Dec. 6, 2018), ECF No. 281. In accordance with the United States Bankruptcy Code, 11 U.S.C. § 362, the Michigan Action was stayed only as to USAG, initially, see Order, id. (filed Dec. 10, 2018), ECF No. 315, but was later stayed as to all defendants but MSU, its Board of Trustees, and the named defendants other than

Nassar who are or were affiliated with MSU (collectively “MSU Defendants”) see Order, id. (filed Nov. 25, 2020), ECF No. 1149.2 According to Lipton, he and Dougherty anticipated that the defendants in the

Michigan Action, other than the MSU Defendants, would seek bankruptcy protection—just as the defendants did in the unrelated MDL litigation where they first became acquainted—and that the Michigan Action would then be stayed.

2 The MSU Defendants, as referred to in the Michigan Action were: MSU; its Board of Trustees; William D. Strampel, D.O, who was the Dean of MSU’s College of Osteopathic Medicine; Jeffrey R. Kovan, D.O., the Director of the MSU Sports Medicine Clinic; Douglas Dietzel, D.O., the Clinical Director of the MSU Sports Medicine Clinic and Team Orthopedic Surgeon for MSU’s Department of Intercollegiate Athletics; Gary Stollak, Ph.D., MSU clinical psychologist and a professor of psychology; Kathie Klages, Head Coach of MSU’s gymnastics team and program; and Destiny Teachnor-Hauk, an MSU athletic trainer. (ECF No. 36-2 at PageID.

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