Back in December, PUSD announced that they were hiring Signature's attorneys, on a contingency basis, to assist PUSD with a malpractice lawsuit against the attorneys PUSD originally hired to sue Signature over a contractual dispute centering on Neal School. PUSD lost that lawsuit and was ordered by the courts to pay Signature $2.1 million in legal fees and $500K for architectural plans provided by Signature for a total of $2.6 million.
Signature's attorneys are Bernard, Balgley & Bonaccorsi.
PUSD's original attorneys (now being sued for malpractice) are Lozano Smith.
Does anyone know what is happening with this lawsuit? The way I understand it, if BB & B/PUSD are successful, they will recover the $2.6 million PUSD owes Signature. Signature will get its money and PUSD will not owe any legal fees to anyone (BB & B and Lozano Smith). O
But what if they're not successful? Doesn't that mean that PUSD will owe $2.6 million, and if so, how will PUSD pay this amount?
Besides taking 7 years to reach this point, this new twist is distasteful - we're hiring the law firm that defeated PUSD in court to sue the law firm we originally hired to represent us?
Apparently, it's necessary so we have a chance to avoid paying the $2.6 million, but it's another piece in the budget puzzle we need to fit in.
I'm wondering how confident PUSD is that they will win this new lawsuit....and concerned because PUSD was very confident they would win the original one.
If PUSD loses, where will the money come from to pay the $2.6 million?