Shalant

FACTS AND PROCEEDINGS BELOW

The Underlying Actions 1. Shalant’s First Suit Against Girardi. In December 2006, Shalant, represented by counsel, filed an action against attorney Thomas Girardi, Continental Casualty Company, and National Union Fire Insurance Company.1 The complaint alleged that Shalant and Girardi jointly represented Jose Castro and his wife as the plaintiffs in a personal injury action arising from an automobile accident that rendered Jose Castro a paraplegic. National Union was the defendants’ insurer. According to Shalant’s complaint against Girardi, when the Castros’ matter settled, Continental and National Union issued the settlement payment to the Castros and Girardi alone without including Shalant as a payee or giving him notice despite National Union’s awareness of his attorney’s fees lien on the settlement proceeds. Thereafter, the complaint alleges, Girardi paid Shalant $745,000 of the proceeds as attorney’s fees but refused to pay an additional $27,745.34 to which Shalant was entitled as the balance of his fee interest and reimbursement of costs. Shalant alleged claims for breach of contract, breach of the covenant of good faith and fair dealing, an…