Suit by lawyer for startup claims he received zilch for his work as general counsel
A California lawyer for a startup called QuickLegal claims in a lawsuit that he was never paid for more than three months of work he performed as in-house general counsel for the company and its predecessor.
The lawyer, Justin Lowenthal, says in the June 11 suit (PDF) that QuickLegal Inc. owes him a 7 percent share in the company or $280,000, whichever is greater, report Corporate Counsel (sub. req.) and LawSites by Robert Ambrogi.
Lowenthal says he had a July 15, 2014, employment agreement with the predecessor company that gave him stock as payment. When the company reconstituted itself as QuickLegal that same month, Lowenthal sent the company’s CEO an email asking him to confirm a conversation that his equity stake would be increased to 7 percent. The CEO, Derek Bluford, confirmed the agreement, the lawsuit says.
When Lowenthal’s contract ended on Nov. 1, 2014, he asked for a certificate reflecting his stock ownership, but Bluford refused, saying Lowenthal’s work was not satisfactory, according to the suit. It was the first he had heard of any problems with his work, Lowenthal says. Bluford also said Lowenthal was working as outside counsel, rather than an in-house attorney, according to the suit.
Lowenthal later received an email from a company official saying that QuickLegal was a defendant in a lawsuit, its bank accounts were frozen, and Lownenthal’s claimed 7 percent share in the company “has very little value right now.”
Lowenthal says he was a company employee, and he is entitled to wages under fair-wage laws.
QuickLegal’s current general counsel gave Corporate Counsel a written statement saying Lowenthal wasn’t compensated because the contract was not satisfactorily performed. The statement also said Lowenthal was an independent contractor and he isn’t covered by wage laws.
