Facts

Peter Zamoyski of Tatro & Zamoyski LLP (Tatro) represented Paul Chau and Lana Lee in an underlying fraud action brought against them by Paul's sister. Tatro was only one of the law firms that represented Chau and Lee in the underlying lawsuit. Chau and Lee became delinquent in payment for attorney fees and agreed to sign a promissory note and provide a deed of trust as security for the past unpaid and future fees. Chau and Lee later obtained separate replacement counsel after a conflict of interest arose between the two.

Tatro initiated foreclosure pursuant to a deed of trust. Chau and Lee initiated an action to restrain the foreclosure, claiming negligence, legal malpractice, and breach of fiduciary duty. Tatro agreed to refrain from foreclosure, but cross-complained for the unpaid fees.

Result

Chen and Lee agreed to pay all unpaid fees and costs to Tatro plus accrued interest. They dismissed their complaint with prejudice.