Former Miles partner takes wage theft, breach of contract case to trial

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One of Maryland’s largest law firms is defending itself in court from a lawsuit brought by a former partner alleging breach of contract and wage theft, shining a light on the complexities that arise when an attorney joins a competing firm.

Donald E. English Jr. resigned from Baltimore-based Miles & Stockbridge PC last July after 13 years with the firm, the last four as equity principal. Now a non-equity partner at Jackson Lewis PC in Baltimore, English started looking for another job in March 2017 after learning his Miles & Stockbridge salary would be $20,000 less than the prior year, according to his lawsuit.

English claims after he resigned, Miles & Stockbridge reduced his salary and “clawed back” nearly $60,000 the firm had paid him, the lawsuit states. The firm also refused to pay English for his work on the last three days of the job as well as his salary and benefits through the end of the month and any prorated bonuses, according to the lawsuit.

Miles & Stockbridge President and CEO Joseph W. Hovermill, who is the firm’s corporate designee, said in his deposition English got back from the firm his $58,000 capital contribution – the amount of money a lawyer must give to the firm to become an equity partner. But during cross-examination Monday in Baltimore City Circuit Court, English testified his former firm performed a “sleight of hand,” giving back the capital contribution but at the same time reclassifying his salary and reducing his wages by $58,000.

Four attorneys from Nelson Mullins Riley & Scarborough LLP in Baltimore who formerly worked at Miles & Stockbridge are scheduled to testify for English. Eleven partners left Miles & Stockbridge in February to open Nelson Mullins’ Baltimore office.

Michael E. Blumenfeld, one of the new Nelson Mullins partners, testified Monday afternoon he has not received his last paycheck for his final two weeks at the firm nor an explanation why.

“Despite repeated requests, they have not provided an accounting of what their position is,” Blumenfeld said.

A provision in the equity partner employment agreement for payment to employees upon termination was brought up frequently on Monday both in English and Blumenfeld’s testimony.

Miles & Stockbridge contends it was entitled to adjust English’s salary to recoup portions of it paid in “advance” that he had not yet earned because he was paid on an “accelerated schedule.” English alleges in his lawsuit the firm’s interpretation goes against the plain meaning of the agreement.

Blumenfeld agreed, saying in his time at Miles & Stockbridge, he was never led to believe any of his pay was actually a loan or an advance or that those wages could be taken back by the firm.

Blumenfeld also testified his compensation as an equity principal should have been decided the “same way as the remaining stockholders were being paid.” Unless the firm withheld payments from the other stockholders, he said, the money shouldn’t have been withheld from him because he decided to leave.

“If I worked it, I should get paid,” Blumenfeld said. “They need to pay me and they need to pay Mr. English.”

Nelson Mullins Baltimore office managing partner Tim Hodge Jr., Matthew S. Sturtz and Deborah K. St. Lawrence-Thompson are also scheduled to testify for English, according to online court records.

A Miles & Stockbridge spokeswoman said Monday the firm does not comment on pending litigation. Miles & Stockbridge is being represented at trial by Ward B. Coe III and Mark S. Saudek, partners at Gallagher Evelius & Jones LLP in Baltimore.

English is represented by Kenneth Ravenell and Tonya Bana, both Baltimore solo practitioners.

The case is Donald E English, Jr. vs Miles & Stockbridge PC, 24C17004438.