Brobeck, Phleger & Harrison, a Partnership v. The Telex Corporation, a Corporation, and Telex Computer Products, Inc., Acorporation

This is a diversity action in which the plaintiff, the San Francisco law firm of Brobeck, Phleger & Harrison (“Brobeck”), sued the Telex Corporation and Telex Computer Products, Inc. (“Telex”) to recover $1,000,000 in attorney’s fees. Telex had engaged Brobeck on a contingency fee basis to prepare a petition for certiorari after the Tenth Circuit reversed a $259.5 million judgment in Telex’s favor against International Business Machines Corporation (“IBM”) and affirmed an $18.5 million counterclaim judgment for IBM against Telex. Brobeck prepared and filed the petition, and after Telex entered a “wash settlement” with IBM in which both parties released their claims against the other, Bro-beck sent Telex a bill for $1,000,000, that it claimed Telex owed it under their written contingency fee agreement. When Telex refused to pay, Brobeck brought this action. Both parties filed motions for summary judgment. The district court granted Bro-beck’s motion, awarding Brobeck $1,000,000 plus interest. Telex now appeals.

Telex was the plaintiff in antitrust litigation against IBM in the United States District Court for the Northern District of Oklahoma. On November 9, 1973 the District…