Professional Documents
Culture Documents
RALPH W. MELLO, )
)
Plaintiff, )
)
v. )
Docket No. 37626
)
HARE, WYNN, NEWELL & NEWTON, )
)
Defendant. )
Comes now the Plaintiff, Ralph W. Mello, and files this amended complaint for
compensatory and punitive damages for failing to honor Plaintiff's attorney's lien on the
law firm located in Birmingham, Alabama which was involved in the False Claims Act
in Williamson County, Tennessee and retained Plaintiff and Larry L. Crain (hereinafter
1
"Crain") to represent him in filing a False Claims Act case against several defendants
4. On or about June 23, 1994 Plaintiff did represent Pogue and prepared
and filed a False Claims Act case against several defendants, including Diabetes
Treatment Centers of America, Inc., in the United States District Court for the Middle
District of Tennessee.
5. Between 1994 and 2002 Plaintiff was lead counsel and spent in excess of
6. In 1995 Plaintiff, Pogue, and Crain agreed to bring in the law firm of
Helmer, Martins & Morgan from Cincinatti, Ohio (hereinafter "Helmer") to assist with the
litigation.
Crain and Helmer, that Hare Wynn would be brought into the case to help litigate the
case. At the request of Plaintiff, all parties further agreed that Plaintiff would no longer
8. At that time, on or about June 25, 2002, Plaintiff entered into a new fee
agreement with Pogue which replaced the previous fee agreement Plaintiff had with
9. Crain, Helmer and Hare Wynn were also parties to that agreement.
11. In or around 2005 Pogue agreed to a settlement with the United States of
America and with HCA which allotted the sum of $1,500,000.00 to the settlement of a
2
13. After the partial settlement of Pogue’s False Claims Act case in 2005
Plaintiff brought an action in this court to, among other things, determine the rights of
15. The June 25, 2002 fee agreement contained an arbitration clause and this
16. An arbitration was held and a decision rendered. A copy of the arbitration
18. This court then entered an order incorporating the arbitration award. A
20. As a result of the arbitration award and court order Plaintiff received 7.5%
of Pogue's relator's share of the partial settlement as provided for in the agreement.
lien on Pogue's right of action and share of any recovery in the False Claims Act case.
22. Hare Wynn was, and is, aware of Plaintiff's attorney's lien and the
23. On February 22, 2007 Pogue filed a petition for bankruptcy protection in
the United States Bankruptcy Court for the Northern District of Alabama.
24. As a part of the Bankruptcy action, all rights of Pogue in the False Claims
3
appointed as Liquidation Trustee, Hare Wynn came to Nashville to negotiate a
settlement of Pogue's False Claims Act case with the remaining defendant, American
26. On or about March 31, 2009 Hare Wynn deliberately and intentionally
executed a settlement agreement with the defendants that provided for a relator's share
for the recognition or satisfaction of Plaintiff's statutory attorney's lien, or equitable lien,
or of the assignment received by Plaintiff in the June 25, 2002 fee agreement.
28. Hare Wynn deliberately and intentionally had the entire $ 8,120,000.00
29. Plaintiff was entitled to the immediate possession of his share of the funds
received by Hare Wynn as the relator’s share, which was the amount of $ 609,000.00.
30. Hare Wynn then deliberately and intentionally, paid the entire $
attorney's lien, equitable lien, and of the assignment received by Plaintiff in the June 25,
satisfy Plaintiff's attorney's lien, Plaintiff's equitable lien, and of the assignment
received by Plaintiff in the June 25, 2002 fee agreement out of the litigation proceeds
received.
False Claims Act action Hare Wynn had a duty to arrange for the satisfaction of
4
Plaintiff's attorney's statutory lien, and equitable lien, and of the assignment received by
Plaintiff in the June 25, 2002 fee agreement out of any proceeds received.
33. Hare Wynn's failure to make provisions in the settlement agreement for
the recognition or satisfaction of Plaintiff's attorney's statutory lien, and equitable lien,
and of the assignment received by Plaintiff in the June 25, 2002 fee agreement out of
the proceeds received by Hare Wynn constitutes a breach of that duty and of Plaintiff's
34. As a direct and proximate result of Hare Wynn's breach Hare Wynn is
liable to Plaintiff for the amount of his 7.5% contingency fee and for additional damages
sustained by Plaintiff.
35. As a direct and proximate result of Hare Wynn’s breach Plaintiff has
suffered damages including, but not limited to, loss of use of the funds belonging to
36. Hare Wynn’s actions make it responsible to Plaintiff for trover and
conversion.
37. As a direct and proximate result of Hare Wynn's breach and conversion
Plaintiff has suffered damages including, but not limited to, loss of use of the funds
38. Hare Wynn’s actions make it responsible to Plaintiff for breach of contract.
Plaintiff has suffered damages including, but not limited to, loss of use of the funds
5
1. That proper process issue requiring the defendant to appear and defend
this action.
2. That the Plaintiff be awarded the amount of his lien as well as additional
compensatory damages and punitive damages against Hare, Wynn, Newell and
4. For such other and further declaratory and other relief as the Court
deems appropriate.
Respectfully submitted,
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing First Amended
Complaint was mailed via the U.S. Postal Service postage prepaid to the following
person this the 2nd day of March, 2010.
6
Hare Wynn Newell & Newton
2025 3rd Avenue North
8th Floor
Birmingham, AL 35203
___________________________
Ralph W. Mello