Spokane-based intellectual property law firm Lee & Hayes PC is suing Coeur d’Alene-based Continuous Composites Inc. for $7.2 million, according to a civil complaint filed Nov. 1 in U.S. District Court for Eastern Washington, in Spokane. 

Steve Starner, CEO of Continuous Composites, says he hasn't been formally served yet, but is aware of the lawsuit. He declines further comment. 

According to the filing, Lee & Hayes entered into a contingency agreement with Continuous Composites in August 2021 through which Lee & Hayes served as legal counsel to represent the company in a lawsuit against Markforged Holding Corp. for infringement of Continuous Composites' patents.

In 2023, Lee & Hayes and Continuous Composites amended the contingency agreement, with the understanding that Continuous Composites is obligated to pay Lee & Hayes 30% of the dollar amount from any settlement or verdict relating to the Markforged litigation. 

As reported last month by the Journal of Business, Continuous Composites won the lawsuit against Markforged in April and was awarded $17.5 million by a jury. In the posttrial brief, Markforged attempted to appeal but ultimately settled with Continuous Composites for a total of $25 million. 

According to the new lawsuit filed by Lee & Hayes, the law firm was made aware of the settlement amount, which is nearly $8 million higher than the jury award, when Markforged released a statement announcing that agreement on Sept. 25. 

Lee & Hayes claims it now is owed at least $7.2 million.

The complaint alleges Continuous Composites has received an initial $18 million payment but also has confirmed it doesn't intend to pay Lee & Hayes the contingency fee outlined in their 2023 agreement. 

Lee & Hayes is being represented by the Spokane office of Kutak Rock LLP. 

Continuous Composites has vacated its administrative offices in downtown Coeur d’Alene and moved its operations to its nearby warehouse space at 216 E. Coeur d’Alene.