HOUSTON – Storm attorney Chad Wilson thinks a former client he left should fork over nearly half of the $270,000 settlement that was achieved after he withdrew.
Alleging breach of contract, the Chad T. Wilson Law Firm filed suit against Raymond Blackburn on June 4 in Harris County District Court.
According to the lawsuit, three years ago Wilson and Blackburn entered into an agreement, wherein Wilson was “to provide legal services” for a dispute with Blackburn’s insurer.
Blackburn agreed to pay a contingent fee of 40 percent, as well as out of pocket expenses. The case settled for $269,947.56 last month and Wilson made a demand for payment, which Blackburn refused.
The suit declines to offer any further details, simply stating that Wilson is entitled to $107,979.02 in contingent fees, plus $4,837.39 for unpaid out of pocket expenses.
While Wilson’s suit only provides one paragraph’s worth of allegations, The Record was able to obtain documents from Blackburn’s lawsuit that helps paint a clearer picture.
Through Wilson, Blackburn and his wife filed suit against Allstate Texas Lloyd’s in Dallas County District Court, alleging the insurer denied their claim for roof damage.
In October 2019, Allstate made a settlement offer, which Blackburn rejected, disagreeing with Wilson’s valuation of the case.
The disagreement, according to Wilson, put the firm in ethical situation, contending that if Blackburn offered his own damage estimate on the witness stand, the firm would be inviting perjury.
“That is not true,” states Blackburn’s motion for determination of lien, which was filed June 3, a day prior to Wilson’s lawsuit. “As has long been recognized in Texas law, a Plaintiff or party is entitled to offer an opinion as to the value of their property, even if it contradicts an expert’s opinion.”
Shortly thereafter, Wilson’s firm withdrew from the case, claiming it did so with cause, court records show.
Blackburn, however, maintains a disagreement over the cost to replace a roof was not adequate justification.
“Because they (Chad T. Wilson Law Firm) withdrew without cause, they forfeited all right to compensation,” the motion states.
In February, the case went to trial, court records show.
Jurors found Allstate failed to comply with the policy, awarding Blackburn $94,087.23 in actual damages. Jurors also found Allstate’s conduct was committed knowingly, awarding the couple $75,000. The jury tacked on $54,000 in fees for representation in the trial court.
On May 21, a final judgment was entered, stating that all disputes between the parties have been settled, court records show.
In his suit, Wilson says that his expertise and diligence are the only reasons why Blackburn succeeded at trial and received a recovery.
Blackburn is asking the trial court in Dallas County to render a fair and equitable division of the attorney’s fees.
Wilson is asking the trial court in Harris County to award him a judgment against Blackburn, allowing him to recover his “reasonable and necessary attorney fees.” When he withdrew, Wilson notified the court it was with good cause and therefore keeping his fee interest in the case.
As previously reported, Wilson was one of three attorneys fingered by convicted hail attorney Kent Livesay.
In June 2018, Livesay, who plead guilty to insurance fraud, gave testimony accusing Wilson and two other attorneys of participating in a barratry scheme that involved illegally paying roofers and adjusters to drum up clients after a hailstorm strike.
Harris County case No. 2020-33636
Dallas County case No. DC-17-10221