Jurisdiction Decisions Highlight Risks of Delayed Payment Plans

In Quinn Emanuel Urquhart & Sullivan LLP v. Nano Dimension Ltd. et al., case number 1:25-cv-12159, in the U.S. District Court for the District of Massachusetts, the plaintiff law firm is seeking to recover approximately $30 million in legal fees from the parent company (Nano Dimension Ltd.) of its former client (Desktop Metal Inc.). The firm was retained by Desktop to enforce a $183 million offer from Nano to purchase Desktop. The agreement between Desktop and Quinn Emanuel stated that the firm would only charge 50% of its normal rates until the matter was resolved. If the firm was successful in securing the purchase of Desktop, the agreement stated Desktop would then be obligated to pay the discounted 50% and an additional 20% (i.e., 120% of normal rates) for all fees incurred.  

The purchase was completed on April 2, 2025, thereby entitling Quinn Emanuel to the 120% rate. After initial attempts to recover the fees failed, Quinn Emanuel began seeking enforcement of the agreement via arbitration and then ultimately through a lawsuit in Massachusetts state court which was eventually removed to create the current federal court action. The court must now decide on pending motions from each party. Quinn Emanuel seeks remand back to state court, and Nano seeks for a transfer to Texas bankruptcy court where Desktop is currently undergoing Chapter 11 proceedings.  

This case serves as a reminder of the risks any law firm takes on when agreeing to delayed payment. If the issue becomes entwined in the bankruptcy proceedings, recovery will become even more complicated by the law firm’s lack of priority. Without a final judgment ordering payment of the fees, Quinn Emmanuel has limited options for recovery since the unpaid fees would be categorized as unsecured debt.