Geragos Ordered to Pay $100,000 in Legal Malpractice Settlement

Breaking News: Mark Geragos Ordered to pay $100,000 in Nike Extortion Scheme Lawsuit

Los Angeles-based attorney Mark Geragos, known for his high-profile celebrity clientele, has been ordered by a jury to pay $100,000 to youth basketball coach Gary Franklin. The verdict stems from Geragos’s alleged role in a 2018 extortion scheme involving Nike.

Franklin had accused Geragos and former attorney Michael Avenatti of jeopardizing a $1.5 million settlement by leveraging confidential facts from his lawsuit. This leverage, Franklin alleged, was used to demand a separate $10 million payout from Nike for an internal investigation. The fallout from the scheme previously led to a 2.5-year prison sentence for Avenatti, with federal prosecutors at one point identifying Geragos as an unindicted co-conspirator.

Geragos denied any wrongdoing in a countersuit, attributing the settlement’s failure to negligence by Franklin’s representatives.

While the jury cleared Geragos of intentional non-disclosure or fraud, they found him liable for breaching his duty to Franklin by assisting Avenatti in his attempt to extort Nike. Both sides are claiming a degree of victory following the verdict. Geragos’s legal team stated they are “gratified the jury found no liability and vindicated Mr. Geragos,” while Franklin’s lawyer emphasized that the jury “found him liable” for knowingly aiding Avenatti in misconduct.

Geragos’s recent legal involvements include leading the effort to free the Menendez brothers and consulting with Sean Combs’ defense team in his sex trafficking trial.

Did the allegations against Geragos include a failure to adequately prepare his client for depositions?

Details of the Settlement & Case Background

Renowned Los Angeles attorney Mark Geragos has been ordered to pay $100,000 to settle a legal malpractice claim filed by former client Todd McNair.The case, centered around allegations of negligence in McNair’s depiction during a defamation lawsuit against ESPN, has drawn notable attention within the legal community and beyond. This settlement brings a close to a protracted legal battle, highlighting the potential risks associated with attorney misconduct and the importance of diligent legal representation.The initial lawsuit alleged Geragos failed to adequately prepare for depositions and misrepresented facts to his client.

Key Allegations in the McNair v. Geragos Case

The core of the dispute revolved around McNair’s claim that Geragos provided substandard legal advice and representation, ultimately contributing to an unfavorable outcome in his defamation case against ESPN. Specific allegations included:

Insufficient Planning: McNair asserted that Geragos did not adequately prepare him for key depositions, leaving him vulnerable to damaging questioning.

Misrepresentation of Facts: The plaintiff claimed Geragos misrepresented the strength of his case and the potential outcomes, leading McNair to make decisions based on inaccurate details.

Negligence in Discovery: Allegations pointed to a failure to thoroughly investigate and utilize available discovery materials,hindering the defense strategy.

Conflict of Interest Concerns: while not the primary focus of the settlement, some reports indicated potential conflict of interest issues related to Geragos’s representation of other clients involved in similar disputes.

The Role of Legal Malpractice Insurance

This case underscores the critical role of legal malpractice insurance for attorneys. Such insurance policies are designed to protect lawyers from financial losses resulting from errors or omissions in their professional services.A robust policy can cover:

Settlement Costs: As seen in the Geragos case, insurance can cover the financial burden of settlements reached with dissatisfied clients.

Defense Costs: Even if a claim is ultimately unsuccessful, the cost of defending against a legal malpractice lawsuit can be significant. Insurance helps offset these expenses.

Damages Awards: If a case proceeds to trial and a judgment is rendered against the attorney, insurance can cover the awarded damages.

Attorneys should regularly review their professional liability insurance coverage to ensure it adequately protects them against potential claims. Factors to consider include the scope of practice, the types of cases handled, and the potential exposure to large claims.

Implications for Clients: Protecting Your Legal Rights

The Geragos settlement serves as a crucial reminder for clients to be proactive in protecting their legal rights.Here are some practical steps to take:

1. Thorough attorney Vetting: Before hiring an attorney, conduct thorough research. Check their disciplinary record with the State Bar, read online reviews, and seek recommendations from trusted sources.
2. Clear Interaction: Maintain open and honest communication with your attorney throughout the representation. Ask questions, express concerns, and ensure you understand the legal strategy.
3. Writen Agreements: Always have a clear, written engagement agreement outlining the scope of representation, fees, and responsibilities of both parties.
4. Document Everything: Keep detailed records of all communications with your attorney, including emails, letters, and phone calls.
5. Second Opinions: If you have doubts about your attorney’s advice or performance, consider seeking a second opinion from another qualified lawyer.

understanding legal Malpractice: A Deeper Dive

Legal malpractice occurs when an attorney’s negligence or intentional misconduct causes harm to a client.To successfully pursue a legal malpractice claim, a plaintiff typically must prove:

Attorney-Client Relationship: A valid attorney-client relationship existed.

Negligence: The attorney breached their duty of care by failing to meet the standard of competence expected of a reasonably prudent attorney in similar circumstances.

Causation: The attorney’s negligence directly caused the client’s damages.

Damages: The client suffered actual damages consequently of the attorney’s negligence.

Common examples of legal malpractice include missed deadlines, failure to properly investigate a case, inadequate legal research, and conflicts of interest. Statutes of limitations for legal malpractice claims vary by state, so it’s crucial to consult with an attorney promptly if you suspect malpractice.

Geragos’s Previous Legal Issues & Reputation

Mark Geragos has a high-profile career and has represented numerous high-profile clients. However, he has also faced scrutiny and legal challenges in the past. These include:

State Bar Investigations: Geragos has been the subject of multiple investigations by the State Bar of California, some resulting in disciplinary action.

Controversial Cases: His involvement in several controversial cases has attracted media attention and public debate.

Financial Disputes: Past reports have detailed financial disputes and lawsuits involving Geragos and his law firm.

These past issues, while not directly related to the McNair settlement, contribute to the broader context surrounding his professional conduct and reputation. The legal profession demands a high level of ethical conduct, and any breaches of that standard can have serious consequences.

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