Verify Smart Corp. v. Colleen Scammell

Summary

The United States District Court for the District of Nevada granted counsel’s motion to withdraw from representing Verify Smart Corp. and adjudicated counsel’s retaining lien under Nevada law. The court awarded $32,857.50 in fees and costs, with interest at 7.50% accruing until payment, and ordered Verify to file a substitution of counsel by January 12, 2026.

Holdings

1. Good cause supported counsel's withdrawal, and the motion to withdraw was granted. Verify was required to appear through substitute counsel because a corporation may appear in federal court only through an attorney.
2. Counsel was not entitled to a charging lien because no verdict, judgment, decree, or affirmative money recovery existed. Counsel instead held a retaining lien on Verify's papers and files left in counsel's possession.
3. The retaining lien attached and was properly subject to adjudication because counsel served Verify with notice of the lien and its amount, and more than five days had passed after service of the motion to adjudicate the lien.
4. In the absence of a fee agreement, counsel was entitled to reasonable compensation based on quantum meruit. Applying the lodestar method and considering the Kerr and Brunzell factors, the court approved $31,727.50 in attorney's fees.
5. Counsel was entitled to $1,130.00 in costs and 7.50% interest on the total award of $32,857.50, accruing from October 28, 2025, until payment.

Questions Presented

1. Whether counsel should be permitted to withdraw from representing Verify Smart Corp.
2. Whether counsel was entitled to a charging lien or a retaining lien under Nevada law.
3. Whether counsel properly perfected and could obtain adjudication of a retaining lien.
4. What amount constituted a reasonable fee for counsel's services in the absence of a fee agreement.
5. Whether counsel was entitled to costs and prejudgment interest.

Disposition

other