Baboian

This case is the unfortunate result of an attorney's misappropriation of funds intended for his clients.

In 1970 the respondent City of Fresno, plaintiff below, commenced an action against appellants for the purpose of acquiring 5 acres of their 20-acre parcel of land for purposes of constructing thereon a community center. James C. Janjigian was ¿mployed by appellants as their attorney of record in the action, and remained such until sometime after March 30, 1972. The written agreement under which Mr. Janjigian was employed clearly indicated that he had no authority to enter into any stipulations concerning the case without the prior consent of his clients; he also had been instructed by his clients that he was to endeavor to stop the condemnation action if possible, and, if that could not be done, then to endeavor to obtain a greater sum than was offered by the city as compensation. Neither the agreement nor the instructions ever were communicated to the representatives of respondent prior to the events hereinafter related.

On June 30, 1971, Attorney Janjigian entered into a written stipulation with the attorneys for respondent; the stipulation provided, in substance,…