Fat Face Fenners Falloon v. Lurie Zepeda Schmalz and Hogan

In 2010, restaurant operator Fat Face Fenner's Falloon (Fat Face) filed a lawsuit against its landlord, Pierside Properties, regarding the condition of the premises and various rental charges. Pierside filed a cross-complaint seeking unpaid rent and termination of Fat Face's leases.

On the opening day of trial, the parties reached a settlement that required Fat Face to pay Pierside $25,000, and forfeit its option to renew its leases. Fat Face then filed a legal malpractice action against its attorneys, William Clark and defendant Lurie, Zepeda, Schmalz & Hogan (LZSH), regarding their handling of the litigation with Pierside. The complaint alleged that immediately prior to the commencement of the Pierside trial, LZSH told Fat Face it was not prepared to try the case, which forced Fat Face to accept an unfavorable settlement. LZSH filed a motion for summary judgment arguing that Fat Face could not establish it would have obtained a more favorable result had the case against Pierside proceeded to trial. The trial court granted the motion.

Fat Face appeals the judgment, asserting that LZSH failed to make a prima facie showing that Fat Face could not prevail on its malpractice claim. LZSH cross-appeals the court's determination that a settlement between co-defendant William Clark and Fat Face was made in good faith. (See Code of Civ. Proc., §§ 877, 877.6.) We reverse the court's judgment, and dismiss the appeal and cross-appeal concerning the determination of good faith settlement.

A summary of Fat Face’s Litigation Against Pierside can be found in the attached document.