Philly law firm collects over $100K in legal fees from coffee company client

By Nicholas Malfitano | Apr 23, 2019


PHILADELPHIA – Law firm Blank Rome was awarded ore than $100,000 in allegedly unpaid legal fees from a Bryn Mawr coffee company, one that it says breached a settlement agreement and initially refused to reconcile it.

On April 11, the Philadelphia County Court of Common Pleas received a praecipe from counsel for the law firm to enter a default judgment against HubBub Coffee Company for $102,786.08, for failure to file a response pleading to the plaintiff’s complaint within the legally-allotted time frame.

Blank Rome, LLP of Philadelphia first filed suit in the Philadelphia County Court of Common Pleas on Feb. 22, 2018 versus HubBub Coffee Company, LLC, of Bryn Mawr.

According to the lawsuit, Blank Rome provided intellectual property and corporate legal services for both HubBub and another entity known as Switchboard Coffee, LLC. After both HubBub and Switchboard allegedly failed and refused to pay their legal fees, Blank Rome initiated action to recover them in court.

On April 11, 2017, the parties entered into a settlement agreement under the following terms: HubBub was to pay Blank Rome $80,000, comprised of $5,000 up-front, $5,000 in monthly installments spanning April to November 2017, with the remaining $35,000 to be paid on Dec. 29, 2017. Furthermore, if the full amount was not paid by Dec. 29, Blank Rome would be entitled to receive another $30,000, thereby increasing the settlement total to $110,000, the suit said.

“After HubBub paid the initial $5,000 to Blank Rome at the time it executed the settlement agreement, HubBub’s $5,000 check for the payment due April 28, 2017 was returned due to insufficient funds, and did not clear until May 15, 2017. HubBub’s $5,000 check for the May 31, 2017 payment was not received until June 14, 2017, and was also returned due to insufficient funds,” per the complaint.

HubBub allegedly did not pay Blank Rome the $5,000 monthly installments due from May to November 2017, nor the final installment of $35,000 due on Dec. 29, 2017 – constituting a breach of the settlement agreement. As a result, Blank Rome said it was contractually entitled to immediate payment of an additional $30,000.

Prior to the default judgment and for breach of contract, the plaintiff was seeking damages of $100,000, plus interest, attorney’s fees, costs and such other relief as the Court deems equitable and just.

The plaintiff was represented by John P. Wixted and Naomi Zwillenberg of Blank Rome, in Philadelphia.

Philadelphia County Court of Common Pleas case 180202271

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com

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