Rothman v. Fillette

469 A.2d 543 (1983)

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Rothman v. Fillette

Pennsylvania Supreme Court
469 A.2d 543 (1983)

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Facts

Gloria and Ronald Fillette (defendants) injured Phillip Rothman (plaintiff) in a car accident. Rothman sued the Fillettes for damages. Rothman’s Pennsylvania lawyer, Irving Madnick, induced the Fillettes and their insurer, Liberty Mutual Insurance Company (Liberty Mutual), to settle and close the case for $7,000. The Fillettes and Liberty Mutual acted in good faith throughout the settlement negotiations. Although Pennsylvania law required lawyers to secure their clients’ consents to any settlements, Rothman neither knew of nor authorized the settlement. Years later, Rothman learned that Madnick fraudulently pocketed the settlement proceeds. Rothman petitioned the trial court to reopen his case against the Fillettes. The trial court granted Rothman’s petition and was affirmed by the intermediate appellate court. The Fillettes appealed to the Pennsylvania Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Nix, J.)

Dissent (Larsen, J.)

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