Margolis Edelstein partners Paul Carbon and David Singh obtained a complete walkaway resolution on behalf of their client, an attorney, in a legal malpractice action.
The underlying matter arose from the purchase and sale of a restaurant business, where the buyer secured commercial small-business financing to acquire company assets, recipes, goodwill, and lease agreements from the seller. Following the formal closing, litigation commenced after the seller sought to enforce an alleged separate promissory note for additional back-end payments, prompting the buyer to assert counterclaims regarding lease terms and financial disclosures, as well as a third-party legal malpractice claim against their former attorney.
As the case progressed, the team negotiated a global resolution under which the parties agreed that no one would make any payment, each party would bear its own fees and costs, and mutual general releases would be exchanged. The agreement called for all remaining claims among the parties to be dismissed with prejudice, effectively bringing the litigation against the firm’s client to an end without any payment.
