Movies & TV / News

Johnny Depp Sues His Lawyers For Malpractice

October 18, 2017 | Posted by Joseph Lee
Johnny Depp

People reports that Johnny Depp is suing his former lawyer Jacob A Bloom (representative of Bloom Hergott Diemer Rosenthal & LaViolette) for working with entertainment firm The Management Group (TMG) to take almost $35 million from him. He filed a suit against Bloom for “professional malpractice, breach of fiduciary duty and unjust enrichment.” Depp hired Bloom and his firm in 1999.

Attorney Adam Waldman said: “Johnny Depp’s lawsuit filed today reflects his continued stand against systemic, self-serving Hollywood practices that he hopes this lawsuit will expose and end. Instead of protecting Mr. Depp’s interests, [Bloom and his firm] engaged in misconduct for their own financial benefit and violated some of the most basic tenets of the attorney-client relationship.

Depp claims that Bloom “improperly and negligently collected over $30,000,000 in voidable contingent fees” from his income without a contract to do so under California law. The suit says that the firm took out a “hard money loan” with a “double digit interest rate” from a lender they had a professional relationship with for Depp, but changed the terms so that it would benefit them and TMG. TMG is also included in the suit. Depp has made several claims against his former business managers and lawyers. He said they mishandled the $650 million he made in the last twenty years to the point it’s almost all gone.

He sued TMG back in February for $25 million for fraud. TMG filed a cross-complaint claiming Depp lived an “ultra-extravagant lifestyle that often knowingly cost [him] in excess of $2 million per month to maintain, which he simply could not afford.” A judge ruled that Depp’s spending habits weren’t relevant and the case is still open.

Depp claims that because of the loan’s terms, he lost $32,000,000 in residual payments from his movies over three years and he still owes $5 million on the loan. He claims the loan “continues to capitalize substantial interest at unreasonable rates” and fees.

The suit states: “This loan cost Mr. Depp millions of dollars in unreasonable interest, fees, and voidable contingent fees, and was imposed on Mr. Depp without any of the protections that should have been afforded to a client when dealing with his attorney. A former TMG employee who was the day-to-day manager of Mr. Depp’s account at TMG testified that [Bloom] submitted requests for expense reimbursement, with little to no supporting backup, which TMG would then pay, without question, from Mr. Depp’s funds. [Bloom’s] expenses and requests for reimbursement were never sent to Mr. Depp for review and approval.

Finally, he said that Bloom took hundreds of thousands of dollars in additional payments for reimbursement of alleged ‘expenses’ that were submitted” by his firm to TMG without telling him why. He said they used a “fox guarding the hen house” strategy, “never disclosing to Mr. Depp either California’s protective legal requirements for written contingency contracts nor the huge fees TMG paid to itself and [Bloom] in violation of California law.”

article topics :

Johnny Depp, Joseph Lee