Facts

South Bay Iron Inc. sued David Pickard, III, and others. When South Bay sued Chris Campbell, it retained Pickard as counsel. South Bay's original complaint did not mention Chris Campbell as a defendant, so Pickard amended the complaint to list Campbell as a defendant. Pickard, however, attempted to serve Campbell with a non-amended summons. After the court entered a default judgment against Campbell, Campbell moved to set aside the judgment arguing that he was improperly served. Campbell further moved to dismiss the lawsuit for delay in prosecution and the court granted.

PLAINTIFF’S CONTENTIONS: South Bay alleged that Pickard engaged in legal malpractice, among other things. South Bay argued that Pickard was aware of Campbell’s motion but still waited four months before attempting to serve Campbell with the amended summons. South Bay argued Pickard did not actually serve Campbell with an amended summons until after the deadline to serve summons and complaints.

DEFENDANTS' CONTENTIONS: Pickard argued that South Bay did not suffer damages because it could have moved to include Campbell in an amended default judgment.

Damages

South Bay sought to recover $187,616.45 and legal fees.

Result

The parties settled for $175,000.