Dykema Gossett has been disqualified from representing a group of plaintiffs suing a dentist and his many practices after a judge in Dallas determined the law firm had previously represented the dentist in other legal matters that are “substantially related” to this case.
National Dental Partners, a private-equity backed dental service organization, and several related plaintiffs filed suit against Dr. Dhaval Thakkar and several of the rural dentistry practices he operates in October 2024, accusing him of taking “blatant actions to impede plaintiffs’ ability to access various bank accounts,” that it needs access to in order to “provide its non-clinical support and management services.” It also accused the dentist of violating various noncompetition and nonsolicitation agreements.
Thakkar has filed counterclaims against NDP, telling the court that what the defendants did to his “once thriving practice is straight out of a private equity bro’s loot and scoot playbook.”
“Unlike others who may have cashed out when listening to the siren song of private equity money, Dr. Thakkar did the opposite: he stayed in and took no money, believing he was investing in the future of his mostly small Texas town dental practices,” Thakkar alleged in his second amended counterclaim filed April 3. “In the end, betrayed by his former legal counsel Dykema Gossett and his so called ‘partners,’ this case is a textbook example of corporate practice of dentistry and greed run amok.”
Thakkar asked the court to disqualify Dykema, the firm that previously represented him during the drafting of several agreements central to this litigation, in a motion filed with the court Nov. 27.
“For more than half decade, Dykema served as legal counsel and trusted advisor to Dr. Thakkar, and Dr. Thakkar shared confidential information about the financial inner workings of his businesses and how he operated his dental practices,” he told the court, explaining his relationship with Dykema dates back to a Nov. 7, 2017 engagement letter the parties inked “in connection with his “strategic planning and various [Dental Service Organization] business and regulatory issues, which included ‘[c]reation of [a] Management Services Agreement’ and other business agreements.”
“Though Dykema began asserting in October 2024 that it no longer represents Dr. Thakkar, that was contrary to Dr. Thakkar’s understanding,” the motion reads. “… Particularly problematic in this lawsuit is that in addition to drafting succession agreements, operating agreements for dental services organizations, and license agreements that Dr. Thakkar has used in his businesses for years, Dykema drafted the management services agreement made the basis of plaintiffs’ current claims against Dr. Thakkar in this case!”
Dykema had argued in response that it shouldn’t be disqualified from representing NDP because Thakkar waited too long to bring his challenge, telling the court his “blatant attempt to deprive plaintiffs of the counsel of their choosing after unreasonably delaying his challenge to Dykema’s representation of NDP and SDP for almost four years must be denied it its entirety.”
Dykema also argued the court had no authority to rule on the motion to disqualify.
“The Court has already ruled upon the pre-arbitration injunctive relief sought by plaintiffs,” Dykema argued. “The remainder of the case must be compelled to arbitration, per the parties’ agreements and the already pending arbitrations involving these same parties’ claims.”
On Wednesday, the judge overseeing the case sided with Thakkar.
“After considering the motion, the record, the evidence and the argument of counsel, the Court finds that Dykema Gossett PLLC is adverse to Dr. Thakkar in this case, that Dykema Gossett PLLC previously represented Dr. Thakkar in other legal matters, that this case is substantially related to the legal work Dykema Gossett PLLC performed for Dr. Thakkar in drafting management services agreements, and that Dykema Gossett PLLC must be disqualified as plaintiffs’ counsel in this case as a result,” Associate Judge Rachel Craig wrote in the Wednesday order.
The plaintiffs in the lawsuit are National Dental Partners, Strategic Dental Executives dba Community Dental Partners, Thakkar Management, Strategic Dental Management of 3C and Strategic Dental Management of Richardson.
The defendants in the lawsuit are Potranco Smiles, Willis Family Dental, Orange Smiles, Alvin Family Dental, Castroville Dental, Mexia Dental, Santa Fe Dental, Port Arthur Smiles, Marbach Smiles, Shaenfield Dental, Lindale Smiles, Canyon Lake Dental, Converse Smiles, 3C Dental Orange, Gloss Dental of Rosenberg, Gun Barrel Smiles, Henderson Smiles, Camp Bowie Smiles, Gloss Dental, Fredericksburg Smiles, Rosharon Smiles, Dhaval Thakkar and Kelly Thakkar.
Prior to Wednesday’s order, National Dental Partners and the other defendants had been represented by John C. Sokatch, Christopher D. Kratovil, Caroline S. Lawhorn, Israel R. Silvas and Daniel J. Hall of Dykema Gossett. The legal team did not respond to messages seeking comment Thursday.
Thakkar and the other defendants are represented by Schyler P. Parker, Rusty J. O’Kane and Caitlin C. McNamara of Wick Phillips Gould & Martin. The legal team declined to comment Thursday.
The case number is DC-24-18670.