As we mentioned earlier this week, the only person who’s a winner at Nixon Peabody right now is former associate Noah Doolittle. Back in 2009, Doolittle filed suit against the firm for breach of contract, fraud and deceit, and misrepresentation, alleging that he’d been promised a bonus worth five percent of the $5.32 million in fees Nixon Peabody collected from aTelo Inc., a client he’d brought in to the firm. Doolittle thought that he’d be receiving a bonus in the ballpark of $266,000; much to his chagrin, he received a bonus of only $75,000. It turns out that Nixon Peabody should have paid up, because after seven years in court, Doolittle won his case, and now the firm may owe him up to $1 million.
The Daily Record (sub. req.) has more information on the jury verdict that was reached:
In a verdict reached on June 20, the former associate, Noah Doolittle, was awarded $265,926, said Doolittle’s lawyer, Nelson Thomas.
The jury also found that Nixon Peabody had violated New York state labor law and therefore must pay Doolittle an additional penalty, Thomas said.
“My guess is, with interest, it’s somewhere between ($400,000) and $500,000 dollars, and then legal fees on top of that. My guess is the legal fees are in excess of $500,000,” he said.
At trial, Nixon Peabody argued that the larger bonus Doolittle thought he’d earned was “discretionary,” and that no such written policy — one that “promised associates they would receive 5 percent of annual fees above $100,000 that were collected from clients they brought to the firm” — actually existed. A firm spokesperson offered this comment after Doolittle won his case: “While he was employed at Nixon Peabody, the firm paid Mr. Doolittle in accordance with its established salary and bonus policies. We believe Mr. Doolittle was compensated fairly for the work he did in this matter.”
Congratulations to Noah Doolittle on his hard-fought victory and for being a winner!
Former associate wins lawsuit against Nixon Peabody that could cost the firm $1 million [Daily Record (sub. req.)]
Unauthorized Enjoyment of Song Irks Law Firm [New York Times]
Earlier: Nixon Peabody: This Is Not a Love Theme Song
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Staci Zaretsky is an editor at Above the Law. Feel free to email her with any tips, questions, or comments. Follow her on Twitter or connect with her on LinkedIn.