Buckley Tangles With PI Startup Over $246,000 in Unpaid Legal Fees

Buckley LLP sign.
Buckley LLP sign.

Buckley offices at 1250 24th Street, NW, in Washington, D.C.

Law firm Buckley LLP sued a former client in Washington federal court Wednesday seeking to collect a $246,000 arbitration award for unpaid legal bills.

A JAMS arbitrator awarded Buckley $245,945 in damages and arbitration costs Monday for the unpaid bills, which are owed by Trustify, a technology company that links law firms to private investigators. It’s unclear why Buckley represented Trustify, or what the underlying matter was.

Trustify has been hit with multiple lawsuits in recent months. Eight of Trustify's former employees sued it in Virginia federal court this year over claims for unpaid wages. Investment firm Anchorage Capital Group LLC sued Trustify and CEO Danny Boice earlier this year in Delaware Chancery Court for allegedly using investments for personal use.

In a blog post that contested Anchorage Capital's claims, Boice wrote: "I have nothing. I am bankrupt. I lost my family. I lost any ability even to find the most low-level of jobs."

Boice could not be reached for comment for this story. A press email address listed on Trustify's website did not immediately respond to a request for comment.

Buckley began representing Trustify under a November 2017 agreement, according to Wednesday's lawsuit filed in the U.S. District Court for the District of Columbia. Buckley agreed to provide legal services to Trustify, and Trustify agreed to pay fees and costs for those services. An exhibit filed under seal with the lawsuit contained a copy of the 2017 agreement.

The two parties also agreed to an April 2018 addendum under which Buckley would continue to work with Trustify “at an agreed upon rate.” The agreement, which contained an arbitration provision, required Trustify to pay Buckley, regardless of the outcome of the matter for which the firm was hired.

Buckley filed a demand for arbitration in January after Trustify failed to pay $243,445 in legal fees and costs “despite repeated promises to do so,” the suit said.

In April, JAMS arbitrator James Robertson, a former federal judge in Washington, awarded Buckley $245,945 in damages and arbitration costs. “Respondent did not respond to the arbitration demand, participate in the arbitration process, pay its portion of the fees associated with the arbitration, or attend the arbitration hearing,” the award said.

The award was served to Buckley lawyers Benjamin Klubes, Mehul Madia and Andrew Louis, as well as Boice. Media and Louis, who filed Wednesday’s lawsuit, did not immediately respond to requests for comment.

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