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CONFIDENTIAL

Sep. 19, 1998

Attorneys
Legal Malpractice
Negligence

Confidential

Settlement –  $750,000

Court

L.A. Superior Central


Attorneys

Plaintiff

Eric R. Little

M. Danton Richardson

David A. Gauntlett


Defendant

- CONFIDENTIAL


Experts

Plaintiff

Russell Jay Frackman
(technical)

Richard M. Squar
(technical)

Facts

The plaintiff, a manufacturer of computer components, was sued in an underlying action for copyright infringement regarding a small portion of the software source code used in several of its computerized monitoring products. The plaintiff had purchased the software from a third party who allegedly did not own the copyright to the software. In opposition to a summary judgment motion, plaintiff's counsel in the underlying action allegedly failed to introduce any admissible evidence regarding plaintiff's costs or any basis for allocation between the infringing and non-infringing components of the products at issue. Counsel also allegedly failed to understand the controlling statute, arguing the wrong burden. Judgment was entered in favor of the underlying plaintiff and the judgment was settled for $1.1 million. The plaintiff brought this action against the defendant attorney based on professional negligence and breach of contract theories of recovery.

Settlement Discussions

The plaintiff demanded $1,100,000 and then made a C.C.P. º998 settlement demand for $999,999. The defendant made no offer of compromise.

Damages

$1,283,000, ($1,450,000 per defendant)

Other Information

The settlement was reached approximately one year and nine months after the case was filed.


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