It is alleged by Intelsat’s legal team that SES has engaged expert witnesses with at least one of them promised a “recovery-based” contingent fee tied directly to his testimony.
The lawyers state that such fees in return for expert testimony is illegal. “Such an arrangement violates clear public policy, including the ethical rules governing lawyers in Virginia and nearly every other state,” argues Intelsat’s legal team.
The target of their objection is Mr James Millstein who is a Senior Managing Director and Co-Chairman of Guggenheim Securities LLC.
The lawyers allege that under his engagement letter, Guggenheim and Mr. Millstein stand to benefit directly if SES’s claim is allowed and the Court accepts his [financial] allocation theories. “As a matter of law, Mr. Millstein’s testimony must be excluded,” they state in a filing to the Bankruptcy Court.
The specific amounts evidently promised or negotiated to Guggenheim/Millstein are redacted in the court filing, but the Intelsat team state that Millstein’s evidence is inadmissible as a matter of law.
The Bankruptcy Court will hear arguments and decide on its position on November 16th.