Legal malpractice
We hired lawyers at Lathrop GPM in August 2017. At the time we were victims of fraud, which had been investigated by the FBI since April 2016. Subsequently, the fraudster was sentenced to 4 years in federal prison. Unfortunately, by the time of indictment,...
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Legal malpractice
We hired lawyers at Lathrop GPM in August 2017. At the time we were victims of fraud, which had been investigated by the FBI since April 2016. Subsequently, the fraudster was sentenced to 4 years in federal prison. Unfortunately, by the time of indictment, he had spent almost all the money he had stolen from us.
Lathrop offered to support our efforts to regain any possible funds, from any other people involved in the case, on an hourly basis with a budget for total costs of roughly $100K. After invoicing almost $250K until June 2018, Lathrop suggested to move towards arbitration which would require that our case be handled on a contingency basis, thus giving the attorneys 40% of any funds to be received. We completely disagreed with this move – having paid 2.5 times the budgeted amount by then - and requested a much lower percentage, which should be agreed on in writing. We asked for an agreement several times during the 3 subsequent months without success. Ultimately, the insurance agreed to pay full policy limit without the arbitration process ever taking place. No contingency agreement was ever signed.
The attorneys took 40% of the proceeds with the promise to support our battle against the financing bank at no cost. They - in addition - did not reimburse us for all hourly fees paid.
In March 2021 the bank filed suit against Lathrop GPM, which led Lathrop to the conclusion that they needed to drop our case. We were then forced to find new attorneys, which Lathrop refused to pay, leaving us with expenses of several $100Ks in additional legal costs. Our new attorneys discovered that Lathrop had deliberately sent us on a suicide mission by filing suit against the bank.
This is a short version of a very complicated matter but does cover all important facts.