The Bopp Law Firm, PC v. Schock for Congress and Aaron Schock

CourtIndiana Court of Appeals
DecidedJuly 6, 2020
Docket19A-CC-2421
StatusPublished

This text of The Bopp Law Firm, PC v. Schock for Congress and Aaron Schock (The Bopp Law Firm, PC v. Schock for Congress and Aaron Schock) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Bopp Law Firm, PC v. Schock for Congress and Aaron Schock, (Ind. Ct. App. 2020).

Opinion

FILED Jul 06 2020, 8:40 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEES James Bopp, Jr. Paul L. Jefferson Corrine L. Youngs Bradley J. Buchheit Amanda L. Narog McNeelyLaw, LLP The Bopp Law Firm, PC Indianapolis, Indiana Terre Haute, Indiana

IN THE COURT OF APPEALS OF INDIANA

The Bopp Law Firm, PC, July 6, 2020 Appellant-Plaintiff, Court of Appeals Case No. 19A-CC-2421 v. Appeal from the Vigo Superior Court Schock for Congress and The Honorable Sarah K. Mullican, Aaron Schock, Judge Appellees-Defendants Trial Court Cause No. 84D03-1608-CC-4967

Baker, Judge.

Court of Appeals of Indiana | Opinion 19A-CC-2421 | July 6, 2020 Page 1 of 18 [1] The Bopp Law Firm, PC (Law Firm), appeals the trial court’s order ruling in

favor of Schock for Congress (SFC) and Aaron Schock on the Law Firm’s

complaint stemming from unpaid legal bills. Finding that the trial court did not

err by concluding that the Law Firm failed to meet its burden of proof, we

affirm.

Facts 1

[2] Schock was a representative to the United States Congress for the 18 th

Congressional District of Illinois. He was elected in 2008 and reelected in every

term through 2014. In March 2015, Schock resigned during a federal

investigation of alleged campaign finance violations.2

[3] SFC was formed in 2007. In 2015, SFC signed an engagement letter with the

Law Firm (the Contract). The Contract was between SFC, referred to as

“Client,” and the Law Firm, and indicated that SFC was hiring the Law Firm

to represent it during the ongoing federal investigation. Appellant’s App. Vol.

II p. 58. According to the Contract, SFC would pay the Law Firm’s “usual and

customary hourly rates” for James Bopp, Jr. (Bopp), at $790 per hour, and

Randy Elf, at $550 per hour. Id. With respect to payment, the Contract stated

that all statements were due and payable within thirty days of receipt and that

1 We held a virtual oral argument in this case on June 23, 2020. We thank counsel for both parties for their advocacy and participation. 2 The charges against Schock were ultimately dropped and SFC pleaded guilty to a misdemeanor.

Court of Appeals of Indiana | Opinion 19A-CC-2421 | July 6, 2020 Page 2 of 18 interest accruing at 1.5% per month would be applied to past due accounts until

paid. The Contract was signed by Paul Kilgore3 on behalf of SFC and by Bopp

on behalf of the Law Firm.

[4] During the course of the Law Firm’s representation of SFC, the Law Firm also

provided legal services to other, separate (though affiliated) legal entities,

including Kilgore, Michael Goode, and Randy Reeves in their individual

capacities, PDS, and four other Schock-related campaign committees. None of

these individuals or entities had signed engagement letters with the Law Firm,

and the Law Firm billed all of this work to SFC. The way in which the Law

Firm structured its bills meant that there is no way to separate the work done

for SFC from the work done for these other entities and individuals.

[5] In April 2015, the Department of Justice (DOJ) served document subpoenas on

SFC, which relayed the subpoenas to the Law Firm. The Law Firm proceeded

to review SFC’s documents for privilege and responsiveness, and in May 2015,

sent the first production of documents to the DOJ. Over the ensuing months,

the Law Firm continued to obtain and review extensive documents for SFC and

then produced the reviewed documents to the DOJ.

[6] Possibly in part because of the Law Firm’s failure to timely produce responsive

documents, on June 4, 2015, the Federal Bureau of Investigation (FBI)

executed a search warrant on the SFC’s campaign office in Peoria, Illinois.

3 Kilgore, through his company, Professional Data Services, Inc. (PDS), served as SFC’s treasurer.

Court of Appeals of Indiana | Opinion 19A-CC-2421 | July 6, 2020 Page 3 of 18 Schock concluded that after the search warrant was executed, the Law Firm’s

role for which it was hired—to respond to the subpoenas—had concluded. But

SFC did not communicate that determination to the Law Firm, which

continued to provide legal services to SFC until September 1, 2015, when the

Law Firm’s representation was officially terminated in an email to Bopp.

[7] At some point, Karen Haney, a full-time SFC employee, became concerned

about the work being provided by the Law Firm as well as its billing practices.

She specifically raised questions about attorney Elf’s billing practices, noting

that on one occasion, he billed for three days of work in June 2015 at the SFC

campaign office but was only seen in the office once for about three hours.

When the Law Firm questioned Elf about the concerns, he resigned on the spot,

but the Law Firm did not inform SFC. The Law Firm adjusted the bills for the

one instance raised by Haney but did not write off his time or otherwise review

Elf’s work or invoices.

[8] Another role of the Law Firm was as trustee of SFC’s finances. As part of this

role, the Law Firm acted as gatekeeper to approve payment of SFC’s bills. At

some point, SFC became aware that the Law Firm frequently and quickly

approved the payments of its own bills, but dragged its feet with respect to

payment of other vendors’ bills. Bopp became angry when he learned that his

own approval for payment of the Law Firm’s fees was no longer sufficient and

that SFC had established a process regarding payment. Bopp demanded

information about the process and alleged that SFC’s payments to the Law

Court of Appeals of Indiana | Opinion 19A-CC-2421 | July 6, 2020 Page 4 of 18 Firm were ninety days past due, leading to the following response from Haney

on August 26, 2015:

I have a July 23 bill from you received on July 30. I also have an August 14 bill received August 18, 2015. Today is August 26.

July 30 to August 26 or even June 23 to Aug 26 is not 90 days past due. That is, unless, you are using when the work was performed not when we received the bill as the 90 day guide. In which case, you haven’t had the same standard for us paying many other attorney bills (see below).

Yes, I received your repeated email inquiries (and responded to some though not all because you charge for every email you read and send) regarding your firm being paid. I got emails from you on July 30, August 7, August 10, August 14 and August 18. I appreciate your persistence.

There are legitimate questions regarding your current bill(s) especially in light of the fact that we were double billed by your firm four times on the June Invoice to the tune of $3,000.

–Meanwhile, I did not receive authorization from you to pay [other attorneys’] bills from June and July until Aug. 18.

Additionally, [another] April bill dated May 7 received by you on May 18 was not authorized for payment by you for a full month later on June 23.

Another [attorney] bill submitted on July 10 to you for June work was not approved for payment by you until a month later on Aug. 11.

Court of Appeals of Indiana | Opinion 19A-CC-2421 | July 6, 2020 Page 5 of 18 Further, [other attorneys’] April and May bills were not approved for payment until June 23. When [one of those attorneys] inquired about payment you said, “Sorry about the delay but we had some issues to work out.”

Retainer request for [another business] on May 1 was not approved until 45 days later on June 16.

Etc.

Appellant’s App. Vol. II p. 176-77.

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The Bopp Law Firm, PC v. Schock for Congress and Aaron Schock, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-bopp-law-firm-pc-v-schock-for-congress-and-aaron-schock-indctapp-2020.