Former nonprofit director accused of poaching cases

A legal nonprofit that represents low-income immigrants on contingency has accused their former executive director of poaching their cases without any agreement on fees in place, causing them to lose hundreds of thousands of dollars in anticipated funds and breaching his director's duties in the process. They also claim his departure has caused a major law firm to withhold funds promised to the organization.

Los Angeles Center for Community Law and Action's complaint states Noah Grynberg announced in July 2021 that he was leaving the organization by the end of August that year, leaving Gina Hong as one of only two staffers and the only attorney in the organization.

After announcing his resignation, Grynberg allegedly solicited LACCLA's clients with unlimited civil matters.

The filing claims Hong and another staff member attempted to negotiate an agreement with Grynberg for payment of costs linked to these lawsuits and LACCLA attorney time spent on them through August into September 2021 but failed to reach an agreement. The complaint says most of these cases have subsequently been resolved, with Grynberg allegedly pocketing at least $500,000 in contingency fees. Los Angeles Center for Community Law and Action v. Grynberg, 24STCV21893 (L.A. Super. Ct., filed Aug. 27, 2024).

Grynberg did not respond to a request for comment.

Jason E. Fellner, a professional responsibility attorney based in San Francisco, said that a client's interests take precedence over any financial dispute or conflict between a law firm and the departing lawyer. Fellner is not involved in the matter.

"If there is a primary responsible attorney for a matter, it's necessary for the law firm to notify the client of a change of circumstance that warrants disclosure of that changed circumstance," Fellner said.

"There is a tension between a lawyer's fiduciary duties to his or her law firm and partners, with the overriding duties extended to the client. When there is ever a doubt, the client's interests are the focus of any ethical considerations to which the state bar rules govern," Fellner continued.

Hong, who filed the lawsuit on behalf of LACCLA, said that the basis of the lawsuit is Grynberg's duties to the nonprofit as a director.

"Whether or not he takes the cases is not the problem," Hong said.

"The amount of money we spent as a nonprofit charitable organization has not been refunded. He should not be harming the organization, to which he has a duty as a former board member," Hong continued. "It is the manner in which he took the cases, at a financial cost to the organization, which is the issue."

One of those cases was a wrongful eviction action in which Quinn Emanuel Urquhart & Sullivan LLP agreed to co-counsel pro bono and donate all its recovered attorneys' fees to LACCLA, according to the complaint. Gamero v. Haim, 18STCV10002 (L.A. Super. Ct., filed Dec. 28, 2018).

The filing notes that the relationship between Quinn Emanuel and LACCLA was due to Grynberg's personal relationships with Quinn Emanuel's litigators. However, Quinn Emmanuel did not terminate their co-counseling agreement following Grynberg's departure.

"As of the date of the filing of this complaint, despite the resolution of the case that LACCLA and Quinn Emanuel agreed to co-counsel, Quinn Emanuel has not responded to numerous inquiries by LACCLA to obtain the attorneys' fees pursuant to their agreement," LACCLA's complaint states.

"Given Quinn Emanuel's partner's statements that they only signed up to assist in the case due to Grynberg, Grynberg's involvement with Quinn Emanuel's failure to fulfill its agreement with LACCLA can be deduced," the complaint said.

"Grynberg's unceremonious and negligent departure from the non-profit resulted in interference with LACCLA's contractual relationship with Quinn Emanuel, causing hundreds of thousands of dollars in fees owed to LACCLA being diverted to Grynberg's personal gain," it continued.

Quinn Emanuel's attorneys on that case, Kenneth R. Chiate and Gregory A. Fuoco, and the firm's media contact did not immediately respond to requests for comment.