16:39, March 07 179 0 abajournal.com

2019-03-07 16:39:07
Michael Cohen sues Trump Organization for nearly $2M in unpaid legal fees

Trump and Cohen

President Donald Trump and Michael Cohen. Photos from Shutterstock.

President Donald Trump’s former lawyer Michael Cohen filed a lawsuit against the Trump Organization on Thursday that alleges that the company violated an agreement to pay his legal fees and related costs.

Cohen filed the suit in New York state court, report the New York Times, the Wall Street Journal, CNBC and Bloomberg.

Cohen says he is owed at least $1.9 million in unpaid fees and costs and another $1.9 million for court-ordered fines, forfeitures and restitution stemming from his August guilty plea to campaign finance violations, tax evasion and bank fraud.

The campaign finance charges related to hush money payments made to adult film star Stormy Daniels and former Playboy model Karen McDougal.

In November, Cohen pleaded guilty to lying to Congress about the timing of a project to build a Trump Tower in Moscow.

Cohen’s suit alleges breach of contract, violation of the duty of good faith and fair dealing, and promissory estoppel.

Cohen says the Trump Organization agreed in 2017 to indemnify him and pay legal fees in connection with investigations arising from his work for the Trump Organization. The company complied with the agreement until Cohen indicated he would be willing to cooperate with prosecutors, the suit says.

The lawsuit indicates that Cohen had been represented by McDermott Will & Emery in connection with investigations by Congress and special counsel Robert Mueller. But the law firm withdrew because of the unpaid legal fees. The law firm’s outstanding bill is more than $1 million, according to the suit. Cohen retained new lawyers and continues to incur legal fees, the suit says.

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