IN THE MATTER OF ARBITRATION BETWEEN 

John Park/Network Management Group Inc. vs.

Timothy Long, ESQ./Orrick Herrington & Sutcliffe LLP

INTRODUCTORY STATEMENT

Pursuant to a Petition for Arbitration being a fee dispute between Petitioners NETWORK MANAGEMENT GROUP INC. (“NMG”) and JOHN PARK (“MR. PARK”) (collectively referred to as “Petitioners”) and TIMOTHY LONG (“LONG”) and ORRICK HERRINGTON & SUTCLIFFE LLP (“ORRICK”) (hereinafter collectively referred as “ORRICK” or “Respondents”), due notice of hearing was given to the parties and the hearing was conducted by Arbitrators, commencing September 26, 2011. Petitioners appeared in person with their authorized legal representative and agreed to binding arbitration. Respondents appeared in person without independent legal representation and agreed to binding arbitration.

On July 31, 2007 NMG and ORRICK entered into a retainer agreement pursuant to which NMG retained the legal services of ORRICK to represent it in a pending lawsuit which had been certified as a class action (referred to at various times as the “McNett Case,” or “Underlying Litigation”). NMG’ s retention of ORRICK represented a change of counsel due to the dissatisfaction of NMG with prior counsel. In February 2008 Plaintiff in the McNett Case joined the principal of NMG, MR. PARK, as an individual defendant, and ORRICK immediately undertook his legal representation. MR. PARK’s demurrer was overruled. The parties did not enter into a new written retainer agreement to address ORRICK’s representation of MR. PARK personally.  The McNett Case involved claims that NMG violated certain wage and hour rules. MR. PARK was joined as a defendant both on the underlying substantive allegations, and on the basis that he was an alter ego of NMG. Before the trial, NMG and MR. PARK terminated ORRICK.

DECISION

IT IS HEREBY ORDERED that ORRICK shall refund to NMG the sum of $550,105.75.  Nothing further shall be paid by either Petitioners or Respondent to the other on account of the subject litigation.