Lawyers for Duane Morris and Edward Zaloga have settled the suit, which was filed in June, Zaloga’s lawyer Patrick Gibson confirmed Wednesday. The parties filed a praecipe for discontinuance Monday. Gibson said the terms of the settlement are confidential.
Zaloga, a doctor from Moosic, sued the firm and attorneys Anthony Gallia and James Halligan in the Philadelphia Court of Common Pleas, seeking $680,000. He had retained the firm in 2010 to pursue First Amendment claims against several members of Moosic’s municipal government, and he alleged that the firm went over its initially agreed-upon budget by more than $600,000. He raised negligence, breach of contract, breach of fiduciary duty and negligent misrepresentation claims.
According to Zaloga’s complaint, the firm drafted a litigation budget estimating $255,750 to take the case through post-trial motions. Duane Morris did not deny that it went over the estimated budget, but the firm said it clearly identified that amount as an estimate, and that Zaloga was aware of the risks of litigation.
In a July answer to the complaint, Duane Morris said the firm had already reached a settlement with Zaloga in 2015, in which Zaloga would release Duane Morris from any claims as long as the firm waived outstanding fees of more than $300,000.
“The  settlement agreement was a ‘walk away’—Duane Morris kept what it had been paid and the Zalogas did not have to pay any more,” Duane Morris’ answer said. The firm also filed counterclaims alleging breach of contract.
Gibson, of Gibson & Perkins in Media, declined to comment on the settlement. Peter Buckley of Fox Rothschild, who is representing Duane Morris, did not immediately return a call seeking comment.