In Parallel Networks, LLC v. Jenner & Block, LLP, the Fifth District Court of Appeals examined the trial court’s judgment confirming an arbitration award. The law firm, Jenner & Block, represented Parallel in patent infringement litigation pursuant to a contingent fee agreement. Jenner & Block later terminated its professional relationship with Parallel and alleged that Parallel owed it attorneys’ fees–both under an hourly fee arrangement and a contingency fee arrangement.
Jenner & Block filed a demand for arbitration and the arbitrator found that Parallel owed Jenner & Block $3,000,000 in attorneys’ fees (hourly) and a sixteen percent contingency fee.
The Court of Appeals held that the trial court correctly enforced the arbitration award. The arbitration provision was not unconscionable nor did it violate public policy. Using the FAA, the statutory grounds for vacating an arbitration award did not exist here, according to the court.
Note: Parallel has filed a Motion for Rehearing en banc. The Court of Appeals extended the deadline for filing a motion for rehearing to November 25, 2015.
