Columnist Jeff German: Lawyers’ spat costs us dearly

Wednesday, June 2, 2004 | 10:53 a.m.

If you ask longtime accountant George Swarts to describe the bitter breakup of the once-prominent law firm of Mainor & Harris, he'll give you a candid answer.

"It's nasty," Swarts says. "Just nasty."

Swarts should know.

He was just appointed receiver of the firm to keep track of the millions of dollars in legal fees flowing in, as its namesakes, Randall Mainor and Richard Harris, and their former associates battle it out in court.

The appointment was made by District Judge Lee Gates, who has become impatient with complex litigation over the breakup that is draining courthouse resources.

Until it went out of business last year and separated into four law firms, Mainor & Harris was known for its expertise in construction defect and personal injury cases.

When we talked about the firm's demise in this space two months ago, the former partners and associates, surrounded by outside lawyers hired to represent their interests, actually said they were optimistic that a settlement could be reached.

But you know what it's like, taking the word of lawyers.

Anytime they're involved in a legal dispute, especially when they're parties to that dispute, things have a way of getting worse before they get better -- which is what's happening here.

The animosity has become so intense that the former partners are incapable of handling the firm's assets.

That's why Gates has given Swarts broad authority to take control of the assets. The firm has been ordered to pay his salary and expenses.

"Things have gotten worse," Swarts says. "I don't have the slightest clue on whether we'll be able to reach a settlement."

During a status check in the case Tuesday, Gates pointed out how far apart all of the sides were after they had trouble seeing eye-to-eye on the simplest of things -- such as whether a lawyer once tied to the firm was ever a bonafide associate. They're also still fighting over who owes rent at the downtown building that once housed the firm.

"You guys can't agree on anything," Gates yelled from the bench, as the hearing came to a close.

"We agree it's Tuesday," responded attorney Robert Eglet, who is representing Mainor's interests.

"Well, we'll see," Gates retorted, before saying goodbye until still another hearing next week.

That brings us back to the worst part of this legal bickering -- the strain it's putting on the publicly funded court system.

Gates isn't the only judge who has been forced to devote too much of his time to the private high-stakes battle.

Three other judges, Michael Cherry, Nancy Saitta and Allan Earl, all have been asked to spend hours trying to resolve separate disputes involving the distribution of legal fees.

Another judge, Stewart Bell, was sought out to take time away from his busy schedule to help the warring parties move toward a global settlement. Bell had no luck, of course.

The different sides, meanwhile, blame the impasse on the greed of each other.

And they want the public to continue footing the bill at the courthouse until they're ready to settle up and leave with fat checks in their wallets.