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Michael Cohen sues Trump Organization for unpaid legal fees


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Michael Cohen sues Trump Organization for unpaid legal fees

By Jonathan Stempel

 

2019-03-07T181144Z_1_LYNXNPEF261LU_RTROPTP_4_USA-TRUMP-RUSSIA-COHEN.JPG

Michael Cohen, the former personal attorney of U.S. President Donald Trump, speaks to reporters he departs with his attorney and advisor Lanny Davis after testifying before a closed House Intelligence Committee hearing on Capitol Hill in Washington, U.S., March 6, 2019. REUTERS/Jim Young

 

NEW YORK (Reuters) - Michael Cohen, the former personal lawyer of U.S. President Donald Trump, on Thursday sued the Trump Organization, saying it reneged on its obligation to reimburse him for millions of dollars of legal fees and costs related to his work.

 

In a complaint filed in the New York state supreme court in Manhattan, Cohen said the Trump Organization stopped paying him last May after it became clear he would cooperate with various probes into his work.

 

These include Special Counsel Robert Mueller's investigation of Russian influence in the 2016 U.S. presidential election, as well as multiple congressional probes.

 

Cohen said the Trump Organization owes him at least $3.8 million, and its failure to pay breached a reimbursement agreement that predated his cooperation.

 

The Trump Organization did not respond to requests for comment.

 

Rudolph Giuliani, an adviser to Trump and former New York City mayor, suggested in an interview that Cohen was owed nothing.

 

"You’re getting in trouble because you work for me, you're getting reimbursed," Giuliani said. "You're getting in trouble for your own stuff, I can't reimburse you."

 

Thursday's lawsuit marks a further break for Cohen, Trump's longtime "fixer," from his former boss.

 

It came as Cohen, 52, prepares this spring to begin a three-year prison term, following his guilty plea to campaign finance violations.

 

These included "hush money" payments to adult film actress Stormy Daniels, whose real name is Stephanie Clifford, and former Playboy model Karen McDougal, who both said they had sexual encounters with Trump.

 

The president has denied their claims. He has also said his campaign did not collude with Moscow.

 

According to the complaint, Cohen and the Trump Organization entered the July 2017 reimbursement agreement when they were pursuing a "joint defense" to various investigations.

 

The organization reaffirmed its payment obligations in December 2017 after Cohen complained to Trump's adult sons Donald Jr. and Eric, who both worked there, about "repeated delays," according to the complaint.

 

Cohen said he has employed at least seven law firms in the last year on matters related to Trump.

 

He said these include two lawsuits by Daniels, the New York attorney general's lawsuit concerning Trump's namesake charity, the Mueller and congressional probes, and his criminal case.

 

The alleged missed reimbursements include $1.9 million for legal fees and costs, plus another $1.9 million that Cohen owes in his criminal case.

 

Cohen this week completed meetings with congressional investigators looking into Trump's activities.

 

Testifying on Feb. 27 before the House Committee on Oversight and Government Reform, Cohen called Trump a "con man" and "cheat," but offered no direct evidence that Trump or his campaign colluded with Moscow in the 2016 election.

 

The case is Cohen v Trump Organization LLC, New York State Supreme Court, New York County, No. 651377/2019.

 

(Reporting by Jonathan Stempel in New York; Additional reporting by Karen Freifeld and Nathan Layne; editing by Jonathan Oatis and Tom Brown)

 

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-- © Copyright Reuters 2019-03-08
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1 minute ago, Cryingdick said:

Hopefully he will have something waiting for him when he is released from prison. I guess a pardon wasn't in the making.

The indications are that a pardon was proffered in exchange for his silence.

 

Now a matter of yet another legitimate criminal investigation.

 

Illiberals get your denial glasses, the truth will (despite Individual-1’s best efforts) out!

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Pretty typical of the way guys like Trump operate. They string out their accounts payable way past late, in an effort to make those service suppliers (like attorneys) even more subservient to them, and to gain even more from them for fear they will not get paid.  Guys like Cohen got big paydays and there was always the promise of an ever bigger one with a client like Trump, but he was always going to lose in the end as he is the slave to a bully.

 

We'll see if the bully wins this time in the end.

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Most of the costs are his legal fees. Much of Cohen's legal problems arose out of his work for Trump. Therefore, the irony is that in defending himself while cooperating with investigations involving his former boss, he is entitled to have his legal costs paid. That will be an interesting legal case on its own.

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11 minutes ago, Proboscis said:

Most of the costs are his legal fees. Much of Cohen's legal problems arose out of his work for Trump. Therefore, the irony is that in defending himself while cooperating with investigations involving his former boss, he is entitled to have his legal costs paid. That will be an interesting legal case on its own.

He may or may not be entitled to fees he believes he is owed arising from his own unlawful actions on Trump's behalf. Fees can be awarded by a court however depending on the merits of the case. There will be a settlement IMO.

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3 minutes ago, lannarebirth said:

He may or may not be entitled to fees he believes he is owed arising from his own unlawful actions on Trump's behalf. Fees can be awarded by a court however depending on the merits of the case. There will be a settlement IMO.

Pretty hard to know any of this without seeing the reimbursement agreement that exists. But, as Probiscis states, where there is no clear written agreement, it will be interesting what is found to be ultimately payable and due. 

 

Again, we can thank President Trump and his mischief for creating all sorts of legal test cases, that will likely set legal precedents for decades to come. 

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