Anatomy of a $32.3 Million Victory: one in a series
Thomas E. Patterson
Breach of contract, shareholder and LLC-member disputes, insurance coverage, legal and accounting malpractice, commercial real estate, intellectual property infringement, and other business litigation.
With Denton’s last appeal exhausted, it has coughed up the payment owed on a $32.3 million verdict obtained in early 2020 for RevoLaze, LLC, plus interest. The win was expected but still gratifying. Dentons was represented by a skilled law firm that put up numerous roadblocks to our success. The conclusion of the case prompted some reflections on its history that I will submit in a series of posts beginning today.
More than once, the late Max Wildman said that “case selection is the key to success in this business.” RevoLaze asked us to convert the case to a contingent fee in 2016 and I had to decide whether to agree. It was our case if I wanted it.
The first consideration was the client. Dr. Darryl Costin of RevoLaze had invented and patented a laser technology to abrade denim to get the worn, ripped, or faded look. Before then, denim was abraded by sandblasting it, giving the workers—many in third world countries—silicosis. So, the invention was not just a fashion item, it had a beneficial impact.
Dr. Costin presented a classic American success story. He came up with an invention and patented it. He had a nice family business and his family members were as nice and personable as he was. Others were infringing on his invention without paying him royalties. This was an injustice that deserved to be remedied.
The law firm he hired to prosecute the infringers, Dentons, had gotten disqualified by an ITC Judge right before the crucial hearing to decide whether infringers would be excluded from American markets. That was malpractice. Even if the disqualification order were wrong, RevoLaze should have been warned of the possibility. As the late Maurey Garvey taught in the medical malpractice field, “almost every medical malpractice case can get reduced to a failure to warn.” The same principles applied here.
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But there was more. The disqualification order was correct. While Dentons was organized as an exotic sounding Swiss verein, the verein was an association of lawyers who shared marketing strategies, attorney fees, and clients. All ethical rules about conflicts—in every state—prohibited lawyers from representing clients on opposite sides. This is what Dentons had done, and they had done it after specifically telling RevoLzze that the exact conflict that disqualified it had been cleared.
Finally, there was not only Dr. Costin the inventor, entrepreneur, and victim, but there was Dr. Costin, the personality. Engaging, humorous, and dedicated, there was no better spokesman for his cause.?I decided to bet on the case, but also on Dr. Costin himself.
Next: early settlement negotiations