Cellino and Barnes finalizing their split

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Ross Cellino and Stephen Barnes have worked out a confidential settlement agreement and a referee has been named to finalize the details of the breakup of the iconic personal injury firm.

Although the breakup of their personal injury firm Cellino & Barnes was scheduled to go to trial in mid-January, both sides agreed about 10 days before that to instead try to negotiate a settlement.

Although court documents filed five months ago indicated the partners hoped to work out the details of their breakup within 30 days, the negotiations are still dragging on.

Cellino & Barnes is well known in western New York for their frequent radio and television advertising and billboards featuring images of both men and touting their easy-to-remember phone number: (800) 888-8888.

Ross Cellino originally tried to arrange a separation with Stephen Barnes in 2016, but that effort failed, so Cellino filed a petition in state Supreme Court to dissolve the firm in May 2017 because of what he called “various differences of opinion” between himself and Barnes.

“After three years of needless, wasteful litigation, during which respondent Barnes has lost virtually every contested issue in this matter — including his motion before this court to dismiss the dissolution proceeding, and his unsuccessful appeal of this court’s decision denying that motion — respondent Barnes now accepts the reality of this situation and has advised this Court that he will consent to a dissolution of Cellino & Barnes P.C.,” Cellino wrote in a Jan. 3 affidavit.

“Barnes and I are each making plans to be prepared in the very near future — i.e. within the next 30 days — to open our own separate law firms,” he wrote.

At that time, Barnes said he planned to combine his personal injury practices in California and New York. Cellino & Barnes has offices in Rochester, Buffalo, Manhattan, Garden City and Melville.

Since January, the two sides still have been unable to finalize their breakup and have agreed to appoint Buffalo attorney John Schmidt as referee to oversee the final dissolution of the firm.

“To the extent the parties cannot agree among themselves on any actions necessary to facilitate the winding up of Cellino & Barnes P.C., the referee is vested with the authority to make a binding final determination as is necessary to effectuate the winding up of Cellino & Barnes P.C.,” according to a stipulated order of dissolution filed Tuesday in state Supreme Court.

“The referee shall be vested with the authority as agreed to by the parties, to the extent the parties’ confidential settlement agreement provides for authority to be vested in the referee; and, any such authority shall result in a binding final determination as is necessary to effectuate the winding up of Cellino & Barnes, P.C.,” according to the order.

Cellino & Barnes P.C. has more than 10,000 clients and 200 employees, including about 60 lawyers.

According to court papers, Barnes claimed that, after Cellino returned from a suspension in 2007, he withdrew from the firm’s legal practice. Cellino was suspended from practicing law in connection with charges of advancing financial assistance to clients unrelated to the expense of litigation. An order of censure was also entered against Barnes.

Since returning from his suspension, Cellino “was not sufficiently involved in any aspect of C&B, save for its marketing and expansion strategies,” Barnes wrote in an affidavit.

Cellino “did not have a significant role in C&B’s functioning as a law firm,” Barnes wrote.

After Cellino filed the petition to dissolve the firm he “engaged in a campaign of conduct, which has caused and continues to cause catastrophic damage to C&B, its reputation, and its brand,” Barnes wrote in court papers.

Attorney Terrence Connors, who represents Cellino, released the following statement: ““For nearly 30 years, Ross Cellino and Steve Barnes built one of the most successful personal injury firms in New York state, focusing on achieving the best possible results for each client. Today Ross and Steve have agreed to part ways, and form two separate firms – Cellino Law and The Barnes Firm. Both firms will be up and running within the next few months. Until that time, all Cellino & Barnes clients will continue to be fully represented by the firm.”

Attorney Christopher Berloth, who represents Barnes, did not immediately respond to a request for comment.

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