A patent-holding company has asked the Supreme Court of the United States to consider its request to vacate an arbitrator’s award in a legal fees dispute. In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-1271, a law firm, Jenner & Block, represented a patent-holding company, Parallel Networks, on a contingency fee basis in an intellectual property lawsuit. The representation agreement that was signed by Parallel Networks stated all disputes related to legal fees would be arbitrated. After filing an unsuccessful motion for summary judgment in the intellectual property case, Jenner & Block ultimately withdrew from its representation of Parallel Networks.
After obtaining new counsel, Parallel Networks settled the intellectual property case for approximately $20 million. Jenner & Block then sought more than $10 million in attorney fees from Parallel Networks. Parallel Networks refused to pay the requested sum and the fee dispute was submitted to arbitration in Texas. Following arbitration proceedings, Jenner & Block received a $3 million legal fees award as well as a percentage of the settlement which amounted to about $1.4 million.
Next, Parallel Networks filed an unsuccessful motion to vacate the arbitrator’s award in Dallas County, Texas and the Fifth District Court of Appeals affirmed. Parallel Networks then filed a petition for review with the Texas Supreme Court. That petition and a later motion for reconsideration were both denied by the Texas high court. A more detailed history of this case is available in an earlier blog post.
On April 20th, Parallel Networks filed a petition for a writ of certiorari with the U.S. Supreme Court. According to Parallel Networks, the question presented in the case is:
Whether Congress intended Section 10(a) of the FAA to categorically foreclose public-policy challenges to arbitration awards.
Interestingly, Jenner & Block has declined to file a response to Parallel Network’s petition.
Please check back in the future for more on this case!
Photo credit: Foter.com
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