Quinn Emanuel Hit With Malpractice Suit

Quinn Emanuel Urquhart Oliver & Hedges has been hit with a malpractice lawsuit that claims the firm botched a $48.8 million settlement even as it took in some $12 million in contingency fees.

Former client Todd Kurtin, a one-time principal at the real estate concern SunCal Cos., filed the claim earlier this month in Los Angeles Superior Court. In his complaint, Kurtin accuses Quinn Emanuel of negligence for failing to advise him of "the meaning and ramifications of all terms of the settlement agreement" he reached with a former business partner, Bruce Elieff, that unwound their co-ventures.

Under the 2005 settlement, Kurtin was to receive his payout in four installments, but, according to the complaint, wound up getting only two payments and is still owed nearly $23 million not including interest. Kurtin is pursuing claims against Elieff for reneging on the settlement agreement.

The complaint against Quinn Emanuel highlights how -- as a result of a contingency agreement that essentially guaranteed Quinn Emanuel half of any amount recovered up to $20 million and 20 percent thereafter -- the firm has received approximately $12 million in fees for representing Kurtin. That amount is equal to what Kurtin himself has gotten to date from the settlement, which was reached a little more than four months after Quinn Emanuel took on the case.

Kurtin could not be reached for comment. Paul Kennerson, an attorney at San Diego-based Kennerson & Grant who is representing Kurtin in the malpractice claim, says, "The case is what it is. You can get the allegations from the pleadings. I don't think it is appropriate for me to comment any further."

Los Angeles-based Quinn Emanuel is known for its high-stakes litigation work on behalf of such clients as Mattel, Northrop Grumman and Shell Oil Co. Earlier this year, firm co-founder and managing partner John Quinn won a jury decision establishing Mattel Inc.'s rights to the Bratz doll line, which was brought to market by another toy company.