Insurance defense boutique Mylotte David & Fitzpatrick has defaulted on its $1.7 million settlement with the city of Philadelphia over unpaid taxes, causing the law department to initiate a separate action against the firm’s three leaders, according to court documents.

The city entered judgment against the personal assets of Edward David, Charles A. Fitzpatrick and John A. Fitzpatrick for the $1.7 million that was agreed upon in the settlement agreement signed in May.

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