Alvarado Community Hospital v. Superior Court

Opinion

WIENER, J.

The principal question presented in these consolidated petitions for writ of mandate is whether a client, defrauded when her attorney settled a lawsuit without authorization and absconded with the funds, may seek and obtain reimbursement of the settlement proceeds from the State Bar’s client security fund (CSF), and at the same time pursue the original lawsuit against the defendant who paid the proceeds to the fraudulent lawyer. We conclude that such a client cannot both accept the benefits of her lawyer’s negotiated settlement and continue to sue the settling defendant. The…