Common Count “Mistake” Claim Against Law Firm Went Away On Appeal Based On Denial Of Tort Claims, With Disgorgement Of Prior Fees Soundly Rejected.
A.M. v. Lieff Cabraser Heiman & Bernstein, LLP, Case Nos. B269624 et al. (2d Dist., Div. 3 June 11, 2019) (unpublished) involved a high-profile law firm’s representation of a minor in a wrongful death action. After the case was concluded, a guardian ad litem sued the firm for malpractice, other torts, and a common count, in the process trying to undo a minor’s compromise order awarding significant fees to the law firm after obtaining a $55-56 million trial recovery and after obtaining a $24 million lower settlement driven by Chrysler’s post-trial bankruptcy. Guardian ad litem also sought disgorgement of $1.6 million in fees and costs earlier paid to the firm. The 2/3 DCA actually found that the law firm did nothing wrong, reversing a common count “mistake” award and validating prior rejections of tort claims against the firm. In the end, the firm received somewhere between $11-12 million in fees and costs, if our math is correct. Actually, based on probate minor’s compromise award standards, this does not strike us as being out of the realm and a good result to end this dispute given the mega-settlement which was at issue.