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Dirty legal laundry.

Dirty Legal Laundry

The latest fallout from the collapse of the Wallace Dover & Dixon law firm came when the defunct firm sued principal Larry Wallace on June 10 for $108,348 in uncollected legal fees.

The legal fees in question revolve around the Iver Johnson Arms and Cycle Works, an ill-fated investment that Wallace, Ed Penick Jr., John Flake, Lynn Lloyd, Tommy Hodges, Frank Lyon Jr. and others entered into in the early 1980s.

The original owner of the munitions plant sued Wallace et al to collect $2 million that was unpaid on the purchase price when the plant went bankrupt in 1986 -- after Lyon pulled out.

The legal fees now in question arose from the defense of that lawsuit, which ended in an undisclosed settlement in October 1987.

Wallace claims:

* The fees owed aren't his alone (he names Penick and Flake as sharing the burden);

* WD&D overbilled him and mishandled the Iver Johnson litigation in the first place.

Add this fuel to the fire: When Wallace was at the firm, his personal legal expenses were plenty lucrative, topping $450,000 annually during the last few years.

Wallace is also reported to have paid the firm $67,000 for services rendered in the Iver Johnson case.

The June lawsuit, filed in Pulaski County Circuit Court, is just one more drop of bad blood between Wallace and his former partners.
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Title Annotation:Wallace Dover & Dixon sues principal Larry Wallace for uncollected legal fees
Publication:Arkansas Business
Date:Jul 8, 1991
Previous Article:Selling the Diamond.
Next Article:Suits from the crypt.

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