Gibson, Dunn & Crutcher LLP has been awarded $12 million in attorney’s fees following a substantial $296 million verdict in favor of their clients, Gray Services and Gray Development Group, in an Arizona real estate dispute. The court dismissed the defense’s objections regarding the reasonableness of the fees, which were partly based on a contingency agreement stipulating a 15% fee of the verdict amount, totaling over $44 million.
The case centered on a 2019 contract between the Gray companies and Florida-based ZOM Holding Inc. The agreement was to jointly develop four high-end real estate sites in Phoenix and Scottsdale. However, ZOM terminated the contract and proceeded to develop the properties independently through an affiliate. The Gray companies alleged breach of contract and breach of the duty of good faith and fair dealing, contending that ZOM circumvented their interests.
After a 12-day trial in Maricopa County, Arizona, the jury deliberated for approximately five hours before awarding the Gray companies the full amount sought—$296,448,624 for each claim of breach of contract and breach of the duty of good faith and fair dealing. The jury’s decision underscored the validity of the Gray companies’ claims and the extent of the damages incurred.
Gibson Dunn’s trial team was led by partners Collin Cox and Sydney Scott, with support from associates Ben Betner, Bryston Gallegos, Johanna Smith, Kylie Calabrese, and Jaime Barrios. Reflecting on the outcome, Collin Cox stated, “The Gray companies have been fighting for this moment for six years. We are extremely thankful to the hardworking members of the jury who listened carefully to the evidence presented by both sides throughout this long trial. Bruce Gray put everything into his companies, and we’re gratified that the jury agreed with us that what ZOM did was wrong.” ([gibsondunn.com](https://www.gibsondunn.com/gibson-dunn-secures-sweeping-victory-and-massive-verdict-for-arizona-real-estate-development-companies/?pdf=display&utm_source=openai))
This verdict and subsequent fee award highlight Gibson Dunn’s proficiency in handling complex real estate litigation. The firm’s Real Estate Practice Group has been recognized for its expertise, advising on significant transactions and disputes worldwide. In 2024, Chambers named Gibson Dunn as “Real Estate Law Firm of the Year,” acknowledging the firm’s outstanding legal work and client service in the real estate sector. ([gibsondunn.com](https://www.gibsondunn.com/chambers-names-gibson-dunn-real-estate-law-firm-of-the-year-at-its-2024-usa-awards/?utm_source=openai))
The court’s decision to award $12 million in attorney’s fees, despite the higher amount stipulated in the contingency agreement, reflects a judicial assessment of reasonable compensation in high-stakes litigation. This outcome serves as a notable example for legal professionals regarding fee arrangements and the enforcement of contractual obligations in the real estate industry.