PHILADELPHIA – A local law firm that is looking to recover more than $229,000 in unpaid legal fees and costs that it incurred performing representation duties for a New Jersey couple in a federal bankruptcy action, has followed up with a motion for summary judgment to ensure that result.
Spector Gadon Rosen Vinci P.C. of Philadelphia first filed suit in the U.S. District Court for the Eastern District of Pennsylvania on March 9 versus Louie Aquilino and Robin Aquilino of Blackwood, N.J.
“In or around March 2020, SGRV was engaged by defendants to represent them in connection with their personal Chapter 7 bankruptcy. Throughout their representation of defendants, SGRV performed services including, but not limited to, the following: Preparing the bankruptcy petition and all other required legal documents, reviewing relevant financial documents, making necessary Court appearances and communicating with the Court, Chapter 7 trustee, US trustee, creditors and counsel for all parties, and representing them in related adversary proceedings. SGRV billed defendants on an hourly basis for the legal services it performed. The basis for SGRV’s hourly rates was set forth in its invoices, which were sent to defendants on a monthly basis,” the suit said.
“Throughout defendants’ representation, defendants never protested or objected to SGRV’s invoices or the accuracy of any of the time entries or work descriptions contained therein. In fact, they constantly praised and showed appreciation to SGRV lead bankruptcy counsel, Leslie Beth Baskin, Esq., during the entire course of the representation until the time surrounding the probable sale of defendants’ residence, in November 2021. As of August 2021, defendants had an outstanding balance of $151,507.19 in attorney’s fees and litigation costs.”
In order to aid in payment of the balance, the parties entered into a letter agreement on Aug. 23, 2021, in which SGRV agreed to reduce the then-outstanding balance of attorney’s fees of about $151,000 to $113,000 and defendants agreed to pay SGRV the sum of $100,000 at closing of their residence located at 2 Lamson Lane, Sewell, N.J., whose closing was then not scheduled. The agreement further stipulated that payment of the additional $13,000 balance, along with other accruing costs and fees would be paid after payment to SGRV of $100,000.
“Subsequently, SGRV learned that defendants closed on the sale of their residence, but to its dismay, SGRV had not been paid the $100,000 agreed upon in the letter agreement. SGRV has requested from defendants a copy of the settlement sheet for the closing of their residence, but defendants have refused this request. SGRV believes that the residence sold for approximately $745,000, which left defendants with hundreds of thousands of dollars in net proceeds,” the suit stated.
“SGRV believes that defendants used some of the net proceeds to purchase a new residence at 2306 Doral Drive, Blackwood, N.J. 08012 on Nov. 22, 2021 for $223,000 in cash, and also used some of the net proceeds to repay a debt to Robin Aquilino’s parents. Not only did SGRV not receive any payment of the legal fees and costs as agreed to by the parties on Aug. 23, 2021, but since the letter agreement, defendants have accrued an additional $77,835.44 in attorney’s fees and costs.”
UPDATE
The plaintiff followed up with a motion for summary judgment on March 11.
“SGRV and defendants entered into an agreement for the SGRV to provide legal services in exchange for defendant’s payment of those fees. SGRV performed legal services pursuant to that agreement, but defendants breached the agreement by failing to pay SGRV for its legal services,” according to the motion.
“The services provided by SGRV included preparing a bankruptcy petition and all other required legal documents in defendants’ personal bankruptcy; reviewing relevant financial documents; making necessary court appearances; and communicating with the Court, Chapter 7 Trustee, US Trustee, creditors, and counsel for all parties; and representing them in related adversary proceedings. After incurring $229,342.63 in attorney fees and costs, defendant failed to pay for SGRV’s services, thereby damaging SGRV.”
According to the plaintiff, “the undisputed facts in this case are that SGRV regularly sent invoices to defendants identifying the amounts due for legal services and after paying some of the invoices, defendants stopped paying, continued to receive the invoices, and never disputed them.”
For counts of breach of contract, unjust enrichment and account stated, the plaintiff is seeking $229,342.63, plus its costs, together with lawful interest, attorney’s fees, costs of suit and such further relief as this Court deems appropriate.
The plaintiff is represented by Adam Filbert of Spector Gadon Rosen Vinci, in Philadelphia.
The defendants have not yet secured legal counsel.
U.S. District Court for the Eastern District of Pennsylvania case 2:22-cv-00905
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com