Tonkon Torp achieved a significant arbitration win involving two clients, a California-based technology company and its patent litigation law firm.
Tonkon Torp was originally retained to represent the tech company in obtaining declaratory and injunctive relief against a litigation finance company that had been engaged to fund the client’s patent enforcement litigation. When the finance company failed to provide the required funding, the technology company terminated their agreement. However, after the patent litigation succeeded, the finance company asserted security interests in the patents and all settlement proceeds.
With Caroline Harris Crowne and Meg Houlihan as the principal attorneys, Tonkon Torp filed claims against the finance company in AAA arbitration asserting that the finance company had no valid security interest and no right to receive any proceeds. Frank Weiss provided strategic consultation throughout the case. After the finance company asserted counterclaims against the tech company and added claims against its patent litigation law firm, Tonkon Torp was retained to represent the law firm in arbitration as well.
In March 2019, Caroline and Meg handled a three-day arbitration hearing in Irvine, California. During the hearing, the finance company claimed a present right to receive $2 million plus up to $27 million from future proceeds. One month later, in April, the arbitrator issued a ruling awarding complete relief to Tonkon Torp’s clients, invalidating the finance company’s claimed security interests and rejecting all of its claims to receive proceeds.
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