EAST ST. LOUIS, Ill. (CN) – An attorney lost his $40 million dollar federal lawsuit against his former partners. Rex Carr filed a civil RICO suit against his former partners Stephen Tillery, Stephen Katz and Douglas Sprong, claiming they cheated him out of class action fees and $10 million from an IBM Personal Pension Plan lawsuit.
Carr, representing himself, sought $20 million in actual damages and $20 million in punitive damages.
But Tillery’s attorneys argued that Carr’s suit was meritless because state courts had dismissed with prejudice previous suits Carr filed with similar accusations. U.S. Judge David Herndon agreed and dismissed the case with prejudice.
“Carr has repeatedly brought claims in state court arising from the same group of operative facts as the claims alleged in this case,” Herndon wrote in his opinion. “Peppered throughout his state court complaints and counterclaims as well as in the Second Amended Complaint at bar are allegations of conspiracy and fraud by the Defendants in their interpretation/ distribution and the alleged failure to pay Carr the full amount of legal fees. The state court suits brought by Carr in 2004 resulted in dismissals with prejudice and thus final judgments on the merits.”