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Settlement of the Malpractice Action
The malpractice action was settled with an entry by the New
York court of an order, the Infants Compromise Order (the order),
on June 2, 1987. The order is based, in part, on (1) a petition,
the Infant's Compromise Petition (the compromise petition), made
by Hester, (2) an affirmation made by a member of the Lipsig firm
(the Lipsig firm affirmation), and (3) an affirmation made by
petitioner (petitioner's affirmation). Among other things, the
order authorizes Hester to settle the malpractice action for the
sum of $2,750,000. From that sum, the order requires that the
Lipsig firm be reimbursed certain disbursements and be paid
$408,318, "as and for their attorneys [sic] fees". From the
$2,750,000, the order further requires that Hester be paid on her
cause of action for loss of services (1) $250,000 and
(2) $408,318, "one-half of the attorneys [sic] fees in this
action". The remainder of the sum is ordered to be paid to
Hester on behalf of Maude. Hester and the Lipsig firm had
previously agreed that the 33-1/3-percent fee would be reduced to
30 percent.
The sum of $408,318, "one-half of the attorneys [sic] fees
in this action", was ordered paid to Hester because petitioner
had waived his right to that sum. In the compromise petition,
Hester explains petitioner's waiver as follows:
My brother, WALTON SUTHERLAND, Esq., who has rendered
invaluable assistance to me in caring for MAUDE, by
agreement with * * * [the Lipsig firm] was to receive
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Last modified: May 25, 2011