Preparing documents for a series of real estate loan transactions entangled a former Austin, Texas, firm and eight of its attorneys in a legal malpractice nightmare that ended with the firm paying about $5 million to defend itself and settle with investor-lenders.

One of the issues in Michael G. McCarthy, et al. v. Hilgers & Watkins, et al. involved who, exactly, the firm and its lawyers represented in several real estate transactions.

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