Breach Of Fiduciary Duty, Fraud And Attorney Fees

Attorney represented Clients in a real estate litigation matter that resulted in a defeated trial verdict. Attorney sued Clients for outstanding fees and the attorneys fees collection action transformed into a cross-complaint for breach of fiduciary duty and fraud by clients and an unclear jury trial special verdict on the issues of the case elevated to the appellate court where it was determined Attorney prevailed in the collection action and Clients prevailed on the fraud claim. On remand, the trial court awarded clients attorney fees and costs in excess of $400,000. Concerned about reporting a fraud judgment to the State Bar, reputations and another pending appeal on the attorney fraud judgment and attorney, the parties settled.

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