Legal Question in Civil Litigation in Tennessee

wrongfully accused, advised to settle

Someone I know is being sued for misappropriation of funds by a former employer. He only worked for the employer for four months and was specifically hired to straighten out the mess that the former person had caused (the one who actually was misappropriating funds). He even called in an IRS representative to help him. This employer is now in trouble with the IRS and is suing everyone who ever worked for him in a financial capacity. My friend did nothing wrong, but was advised by his lawyer (after a 30-minute meeting over lunch) to settle for $5,000. This offer was refused by the former employer, and $9,000 was demanded. He has now been advised by his lawyer to offer to settle for $6,000, telling him it would take much more money and several years to fight it. It seems to me a cut-and-dry case and that it could easily be proven that he did nothing wrong. Couldn't they just get a deposition from the IRS representative? Would this really take more than $6,000 in fees?


Asked on 11/20/02, 11:38 am

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: wrongfully accused, advised to settle

Assuming that your friend could prevail on a Motion for Summary Judgment (Motion to Dismiss)the legal fees to do all the discovery required and file the motion could very easily exceed $30,000.00. A trial would cost much more.

Many trial judges are reluctant to grant Summary Judgment Motions for fear of reversal. $9,000.00 would be a great result, just based on the defense costs. Proving your right, can be very expensive.

Read more
Answered on 11/20/02, 2:24 pm


Related Questions & Answers

More General Civil Litigation questions and answers in Tennessee