Settlement Agreements: Judgment Creditor's Release Of Judgment Debtor Does Not Preclude Her Attorney From Pursuing Contingency Fee and Costs From Judgment Debtor

The Trial Judge Thought Something Didn't Seem Right.

    An opinion from the Second District, Division 6, begins snappily: "Of course, on occasion, a client may not fully appreciate the excellent result achieved by her or his attorney." And of course, the author is Justice Gilbert. Mancini & Associates v. Jason Schwetz, B290498 (2/6  9/4/19). 

    The background is that Mancini & Associates obtained a substantial jury award for their contingency fee client Gina Rodriguez, who had sued her employer for wrongful termination, sexual harassment, sexual battery, and breach of contract, among other causes of action. The award proved to be uncollectable. Some years later, Rodriguez and her former employer, Jason Schwetz, buried the hatchet, and entered into a settlement agreement and release, without consideration. 

    Mancini & Associates sued Schwetz and the trial court decided Mancini "established that Schwetz intentionally interfered with the retainer agreement and . . . entered judgment for $409,351,351.81. "In ruling, the trial judge commented, 'Something about this [factual situation] doesn't seem right. It's inconsistent. Sometimes I see this happen, this sort of resolution when there is evidence of a kind of romantic relationship that's been rekindled . . . '"

    Justice Gilbert asks, "Does this release preclude the attorney from pursuing his costs and fees from the defendant?" And answers: "Of course not."