We represent a commercial leasing company, Trident Leasing, here in Gotham, that leases machine equipment to manufacturers. We have an Engagement Agreement, which sets forth a very simple one-third contingent fee agreement. If we collected $30.00, we would keep $10.00, and remit $20.00 to the client. If we forward the matter to counsel outside of Gotham, that outside counsel typically receives a portion of our contingent fee, for example, twenty percent. But there would be no change to the overall fee, Trident would still pay the one-third. My firm’s relationship with James Gordon, the Chief Operating Officer of Trident, was strong. For many years, we collected for Trident, with some matters being settled, some requiring suit, some going through judgment enforcement. But over the years, the relationship was consistent.
Along came one of their customers, the Cloud City Mining Company (“CCMC”), which was located in a galaxy far far away, in Bespin. CCMC was liable for a past due invoice of about $90,000.00. As I am not admitted in Bespin, I needed to bring in an old buddy, old pal, who practices law in there, namely, Lando Calrissian, to file a lawsuit.
After suit, at first, CCMC was reluctant to engage with us, but with Lando’s sweet talking, (it works, every time), Lando gained the ear of CCMC’s executives. There was really no defense to the action. But their defense was some sales tactics by Trident’s local representative. Lando was very effective in negotiating a payment arrangement with the CCMC, after all, Lando was a native to the galaxy. But one thing that CCMC kept insisting on, was negotiating with Lando only, copying my office, but did not want to deal with Trident’s representative in Cloud City. It was almost as if this unnamed representative caused fear throughout the galaxy.
Lando worked out all the paperwork, to settle the matter for a lump sum of $78,000.00, and I reached out to Trident to get approval for that amount. James Gordon responded that they approved of the settlement, the same way that Gordon has done for years.
But, as the settlement documents were being finalized, I received an email from Trident’s local representative, none other than Darth Vader. Vader first requested that the funds be sent to him for processing. I responded bluntly, that we have never done that before, and that the terms of the Engagement Letter did not provide for that. Vader apparently, wanted to alter the deal.
Then, after the paperwork was signed and sealed, and CCMC remitted the funds to Lando, Vader reached out again, asking for a letter of apology, that he wanted executed by CCMC. I explained that we already closed the deal, and that a letter of apology was not part of the settlement. Vader wished to alter the deal further.
Lando received the $78,000.00, took his twenty percent, and remit the balance to my office. We confirmed with Gordon that we received the funds, and was about to remit the $52,260.00. Vader struck again. He said that Gordon’s approval of $78,000.00 was how much Trident wanted to net. I, of course, explained that first, this was not what Gordon said, and more importantly, that would mean we would have had to collect $103,974, in order for client to net $78K, and that that amount was higher than the debt.
Vader then explained, and I quote, “I did not think that your fee was set in stone, and we could negotiate each matter, to get them settled.”
After I finished laughing out loud to myself, I explained to him the error of his ways. And explained that I would not discount my fee. After all, I had the high ground.
