US district court orders Iraq to pay former legal counsel for unpaid services

Mills Law Group has represented the Iraqi government in various legal matters since 2004

US district court orders Iraq to pay former legal counsel for unpaid services

In a recent decision, US district judge Royce Lamberth ruled that the Republic of Iraq owes over US$5.7 million to the Mills Law Group, led by attorney Timothy Mills, for unpaid legal fees accrued over several years.

The ruling, issued in Washington, DC, found that Iraq had breached its contract with Mills’ firm, which had represented the Iraqi government in various legal matters since 2004.

Reuters reported that Judge Lamberth's ruling emphasized that Iraq had "demonstrated a willingness to benefit from the services of US-based entities without paying for them." This ruling concludes a dispute between Iraq and Mills’ firm, which began in 2021 when the firm withdrew from a protracted lawsuit involving Wye Oak, a now-defunct US defence contractor. Mills had represented Iraq in the case for years before suing the Iraqi government for unpaid fees that allegedly went unaddressed for over three years. The court awarded the Mills Law Group the full amount sought in the lawsuit, which Mills affirmed, stating the firm would “move aggressively to enforce the order.”

Most Read

The legal issues stemmed from a longstanding case initiated by Wye Oak in 2009. The Pennsylvania-based contractor was hired by the Iraqi Ministry of Defense in 2004 to recover and sell scrap metal in post-invasion Iraq, with the proceeds intended for acquiring equipment for Iraq's new security forces. However, Wye Oak alleged it never received the US$24 million payment for its services, prompting the company to file a breach of contract lawsuit.

Wye Oak’s CEO, Dale Stoffel, met with US officials to negotiate the payment just days before he and a colleague were killed en route to Baghdad. The company’s sole shareholder, Barbara Stoffel, pursued legal action against Iraq. Mills and his firm, retained by Iraq to handle the matter, continued as counsel until their withdrawal in 2021, citing unpaid fees.

In December 2022, Judge Lamberth also ordered Iraq to pay Wye Oak over US$120 million in damages. Iraq is currently appealing that judgment. Neither Iraq nor Wye Oak has issued further statements on the matter, and legal proceedings are expected to continue as both cases unfold.

Recent articles & video

White & Case welcomes Aaron Kenavan, Jamie Palmer to M&A practice

Sophia Kailis strengthens senior lawyer roster at Keypoint

Law Council of Australia rings warning bells over pitched AML/CTF amendment bill

RP Legal Group's study reveals Louisiana has the highest rate of medical malpractice in the US

US law firm WilmerHale to close Beijing office amid shifts in China's legal market

UK law firms report record growth despite market volatility and rising concerns over cybersecurity

Most Read Articles

Best Law Firms in Australia and New Zealand for 2024 revealed

Ashurst steals Kevin Harris from NRF

Clayton Utz to bring in Katie Higgins as partner

Federal Court finds insurance exclusions misleading under consumer protection law