A small company specializing in repairing McFlurry ice cream machines, Kytch Inc., is disputing a claim by its former law firm, Clare Locke, over a fee request of at least $7 million. The dispute has its roots in a case where Kytch is suing McDonald’s Corp for false advertising and trade libel. Earlier this week, Kytch contested an arbitrator’s prior order to freeze potentials funds from the McDonald’s settlement that Clare Locke claims it is entitled to.
Clare Locke, along with Irell & Manella, previously acted as Kytch’s representation against McDonald’s. Clare Locke alleges that Kytch’s new lawyers, four ex-Clare Locke attorneys who established their own firm, departed solely to claim the contingency fees expected from the McDonald’s lawsuit.
Kytch asserts that it ended its partnership with Clare Locke following a disagreement in July 2023 over costs associated with expert witnesses necessary for the case. According to Kytch, Clare Locke insinuated that the expert’s costs should be covered by an external litigation financier. An additional point of contention was Clare Locke founder, Elizabeth “Libby” Locke, stating the unwillingness of the firm to work with Meier Watkins as co-counsel.
Clare Locke has earned recognition for its successful $787.5 million settlement case on behalf of Dominion Voting Systems Inc. against the Fox News owner. Clare Locke’s work for Kytch has been billed at discounted rates under three separate engagement letters, indicating a difference in billing policies compared to those assigned to Dominion Voting Systems.
In October last year, Kytch appointed the newly established Meier Watkins as its outside counsel. Recent court filings suggest that a possible settlement with McDonalds could be achieved through mediation.
This tussle over fees has led Clare Locke to initially file for arbitration. The firm was awarded an emergency order favoring its case on April 2. Clare Locke has now filed a civil complaint in the US District Court for the Eastern District of Virginia to enforce this order. A hearing for this case, Clare Locke v. Kytch, is set for May 9.