Legal Question in Real Estate Law in California

Frivolous lawsuit

Have been sued by a person claiming I ruined their credit together with a realtor who is accused of bad faith. Could not get the suit dismissed had to go to mediation. Shared attorney with co-defendant. Charged us 10K before mediation and more since. Co-defendant was advised to settle at mediation, even though I offered no money and wanted to go to trial. They made an ''economic'' decision. Now I have to pay half of legal fees and they want me to sign the settlement giving up any rights to recover damages or counter sue. What should I do?

P.S. I consider the suit frivolous, because the plaintiff could not establish any basis for the suit for my part.


Asked on 5/13/07, 6:44 am

5 Answers from Attorneys

George Shers Law Offices of Georges H. Shers

Re: Frivolous lawsuit

I agree with the three other attorneys, especially that the attorney had a clear conflict of interest. Demand a detailed billing sheet of what he charged and then go through it with a fine tooth comb to put the charges into several categories, including work clearly done for other defendant's benefits, clearly for you alone, done for both of you, work that would have been done by him if you had not been his client. If the amount charged to you is worth much less that the amount you have been billed, have a sharp letter [perhaps by an attorney]sent to him pointing out the conflict of interest, the portion that really should billed to you, and that he should "eat" the bill because he did not properly represent you. Would the realtor's insurance cover you?

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Answered on 5/13/07, 8:57 pm
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Frivolous lawsuit

You have received some excellent advice from the other attorneys and as you can guess from the number of responses you received, your instinct to seek a second opinion was correct. I do notice that you�re in the San Diego area. I would be happy to discuss some of the issues concerning your case to see how I may be of assistance.

I offer prospective clients an initial consultation of 30 minutes for free.

I look forward to speaking with you.

Yours truly,

Bryan

Bryan C. Becker, Esq.

Principal

Law Office of Bryan C. Becker

The Koll Center

501 W. Broadway, Suite 800

San Diego, CA 92101

Toll Free: 877*201*8728

Direct: 619*400*4929

Fax: 619*400*4810

Member, National Association of Consumer Advocates

www.naca.net

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Answered on 5/13/07, 10:55 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Frivolous lawsuit

If you were to prevail at trial, you

might be able to sue the other party for malicious prosecution if they know there's no basis to have brought suit against you in the first place.

I'm not sure what the status of your case is when you state "they want me to sign the settlement." Is there a settlement on your part, or isn't there? If you sign a settlement, then you give up the right to sue for malicious prosecution.

As for the nature of the suit, I can't comment without having reviewed the entire file. Your attorney and you should discuss the ramifications and you should be prepared to pay the attorney's fees and costs to go to trial, which could be quite expensive.

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Answered on 5/13/07, 11:24 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Frivolous lawsuit

There is a substantial body of law regarding the effect of settlement by one co-defendant on other defendants who do not settle. There is also a general principle that it is unethical for an attorney to represent two defendants whose interests are differentn whose defenses are different, and where settlement by one might prejudice the rights of the other.

My guess is that the real estate licensee has insurance and you don't.

It is also likely that the contract sued upon has an attorney fee clause (whether it would benefit you, I can;t say).

All of these things suggest that it was a strategic blunder on your part to use the same attorney, and an ethical blunder of the attorney's part to accept both representations (unless disclosures were made and you waived the conflicts, which may have been another mistake on your part).

I suggest at this point you quickly line up an initial consultation with a trial attorney (a litigator) to get independent advice on how to avoid being stuck with this settlement, but in the meanwhile, don't sign it and don't put an oral agreement on the record before a judge in open court.

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Answered on 5/13/07, 4:19 pm
Johm Smith tom's

Re: Frivolous lawsuit

I agree with Mr. Whipple that you are dealing with an attorney who has an apparent conflict of interest with you and you should have had your own attorney all along. Don't sign anything. Our CA attorney can handle this for you or refer you for free to someone in your area.

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Answered on 5/13/07, 4:29 pm


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