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PENNSYLVANIA RECORD

Thursday, May 2, 2024

After a start in Missouri, Armstrong Teasdale's pursuit of $3.5 million in legal fees lands in Pa. federal court

Federal Court
Carrieslove

Love | Armstrong Teasdale

PHILADELPHIA – A Missouri law firm which also maintains a Philadelphia office is seeking more than $3.5 million in outstanding legal bills from a half-dozen defendants spread across the United States and Puerto Rico in a Pennsylvania federal court.

Armstrong Teasdale, LLP of St. Louis County, Mo. first filed suit in the U.S. District Court for the Eastern District of Pennsylvania on Aug. 14 versus Matt Martorello, Rebecca Martorello and Justin Martorello of Texas, Gallant Capital, LLC, of Los Angeles, Calif., Liont, LLC of Dorado, Puerto Rico and Eventide Credit Acquisitions, LLC, of Dallas, Texas.

“In October 2018, Matt Martorello engaged Armstrong to represent him in several ongoing lawsuits, under the terms of an Engagement Letter dated Oct. 2, 2018. The October 2018 retention of Armstrong by Matt Martorello followed his earlier engagement in July 2017 of attorneys who later moved to Armstrong in September 2018. At that time, Martorello decided to retain Armstrong and move his files to Armstrong for the litigation described herein,” the suit says.

“On Dec. 13, 2018, Matt Martorello executed an Engagement Letter with Armstrong for its representation of Eventide. On June 6, 2019, Matt Martorello executed an Engagement Letter with Armstrong for its representation of Gallant. Armstrong represented some or all of the defendants in multiple lawsuits before multiple venues nationwide, from October 2018 to October 2020.”

The litigation in question was a series of 11 lawsuits and arbitrations lodged in federal courts across the country, including the Eastern District of Virginia, the Northern District of Georgia, the District of Oregon, the Northern District of California, the District of Massachusetts and the Central District of California.

“Armstrong has also represented some or all of the defendants in various arbitrations before the American Arbitration Association. In accord with the engagement letters, during the engagement, defendants were provided statements for the services Armstrong rendered. From November of 2018 until July of 2019, defendants paid the statements as presented,” the suit states.

“In September 2020, Armstrong was advised that defendants were retaining new counsel to replace Armstrong as their counsel. Prior to terminating Armstrong as their attorneys, defendants never stated that they would not pay Armstrong’s statement. Defendants have failed to pay outstanding balances for these services, in an amount exceeding $3,500,000.”

According to Armstrong Teasdale’s suit, “the work it performed was necessary, the number of hours spent performing that work was appropriate and the hourly rates charged for that work were fair and reasonable for the specialized, complex, and professional services provided to defendants.”

The instant case was initially filed in a Missouri federal court, but counsel for the defendants there said “virtually all” of Armstrong Teasdale’s services were provided by the firm’s offices in Philadelphia and Virginia, which called into question the St. Louis’ federal court’s jurisdiction over the dispute.

The defendants said the firm never represented them in any Missouri lawsuits.

For counts of suit on account, breach of contract and quantum meruit, the plaintiff is seeking damages in the amount of $3,558,783.90, plus pre-judgment interest in the amount of nine percent per year, together with any other and further relief as this Court deems just and proper.

The plaintiff is represented by Carrie S. Love of Armstrong Teasdale, in Philadelphia.

The defendants have not yet secured legal counsel.

U.S. District Court for the Eastern District of Pennsylvania case 2:21-cv-03631

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

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