After nearly a year of scorched-earth litigation, two Metro Detroit law firms have quietly called a truce. A confidential settlement, entered in Oakland County Circuit Court on Monday, resolves the bitter post-breakup brawl that followed a messy 2025 split at one of Michigan's largest insurance-defense firms. The deal closes out most state-court claims between Novara (formerly Novara Tesija Catenacci McDonald & Baas) and McDonald Baas & Livingston (MBL), and sets out a private payment schedule and mutual releases.
Deal details
According to Crain's Detroit Business, the two sides agreed to dismiss all claims, counterclaims, and intervening claims with prejudice. MBL will make an initial lump-sum payment within 14 days, with the balance to be paid in equal monthly installments over 36 months starting April 1. The settlement also requires Novara to pull its lawsuit against Progressive Michigan Insurance Co., and to dismiss its federal claims against Bass Livingston and MBL attorney Timothy Kubik. Both camps further promised not to pursue criminal charges or U.S. Equal Employment Opportunity Commission complaints. The total amount of the payment remains under wraps.
Federal litigation still active
The détente in state court does not mean the entire war is over. The breakup also spawned federal litigation. In City Center Law Group, P.L.L.C. et al v. Baas et al, filed June 30, 2025, in the U.S. District Court for the Eastern District of Michigan, defendants include Jason Baas, Frederick Livingston, Timothy Kubick and legal-technology vendor Litify. According to the federal docket, that case, along with a separate Novara suit involving Litify, is still active.
See the docket at Justia Dockets & Filings.
How the split reshaped the market
This settlement caps a saga that started in 2025, when co-managing partners Marc McDonald and Jason Baas walked out of Novara and launched MBL, taking roughly 80 attorneys and about 80 staffers with them. The mass departure shook up Michigan's insurance-defense bar and set off a volley of lawsuits over clients, technology and fees that the new agreement now largely puts to rest, as reported by Crain's Grand Rapids Business.
What it means for clients
For insurers and corporate clients, the practical takeaway is a little less drama, at least on the state-court side. The settlement bars both firms from pursuing criminal or EEOC complaints and limits discovery into MBL's insurance-company clients in the related federal case, which reduces the risk of immediate business disruption tied to the former partners' feud. With most state claims now extinguished, any remaining fireworks will be confined to the federal cases and the separate suit involving Litify.
