Attorneys contend lawyer 'Racehorse' Haynes committed fraud; he denies it

Attorneys Wednesday said famed Houston lawyer Richard "Racehorse" Haynes committed fraud by trying to squeeze $3 million out of a client after taking more than $850,000 in legal fees for a 2004 money-laundering case.

Dong Huynh hired Haynes to defend him against criminal charges in federal court. After being convicted in 2008, Huynh hired attorney Matthew Nowak to sue Haynes for breach of contract and fraud. Wednesday was the first day of arguments in the lawsuit against Haynes in the Harris County civil courthouse.

Lawyers for Haynes and his partners said the case against Huynh changed between 2004 and 2008, becoming exponentially harder and leading to higher fees.

"He actually got more legal services than he paid for," said John Raley. "And the facts bear that out."

Raley said Huynh was originally indicted for laundering $600,000, but a later indictment raised that figure to $24 million.

One written contract

Huynh and Haynes agreed to the original $850,000 contract, the only written contract between the two men in April 2004. At the time, the price was more than three times what any other lawyer had asked for, Nowak said.

In the months after the contract was signed, federal authorities filed more indictments, indicating the case was much bigger than first realized.

In August 2005, Haynes said he wanted $3 million more to defend Huynh, and the two came to a verbal agreement, lawyers for Haynes said.

Jurors will have to decide if an agreement was reached and, if so, whether it was binding.

In the years between the first contract and the trial, Haynes partnered with Walter Boyd, who was defending Huynh's nephew, Duk Huynh.

The nephew ultimately testified against his uncle, and attorneys for Dong Huynh said Wednesday that Boyd and Haynes violated ethical rules prohibiting the same lawyers from representing adverse parties.

"This was a clear conflict of interest," Nowak declared.

Attorney admonished

Attorneys for Boyd told jurors Wednesday that the trial is a contract dispute between Haynes and Dong Huynh. Boyd, they said, should not have been sued.

"Dong has conjured up a conflict of interest issue for this," said attorney Kenneth Norman. "In one word, it's frivolous"

During Norman's opening arguments, he raised the ire of state District Judge Mike Miller.

"Richard Haynes is a legendary lawyer," Norman said. "Dong is a convicted drug money launderer. Now Dong wants his money back because he wanted an acquittal."

Since the parties are not allowed to again litigate the 2008 criminal trial, the judge admonished Norman outside the presence of the jury.

"Mr. Norman, you're either going to be sanctioned or held in contempt, but either way it's going to cost you $500," Miller told the attorney.

The trial, in Miller's court, is expected to last two weeks.

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