Case details

Suit: Attorney’s renegotiated contract set athlete up for failure

SUMMARY

$617800

Amount

Verdict-Plaintiff

Result type

Not present

Ruling
KEYWORDS
emotional distress, mental, psychological
FACTS
In the fall of 2010, plaintiff Dagny Knutson, a former Olympic swimming hopeful and a member of USA Swimming’s national team, retained former USA Water Polo and United States Aquatics Sports president Richard Foster, a licensed California attorney, to enforce a contractual agreement with former Olympic coach Mark Schubert and USA Swimming. Knutson was previously committed to Auburn University when Schubert, then the head coach for USA Swimming’s national team, showed up unannounced at one of her swim meets in Ohio. Schubert allegedly confided to Knutson and her coach that Auburn’s assistant coach was leaving the program and allegedly proceeded to outline a plan for Knutson to become the first high school swimmer to turn pro. A week later, Schubert flew to Minot, North Dakota, to allegedly convince Knutson’s parents of the idea. Knutson claimed that Schubert promised that if she gave up her five-year scholarship to Auburn, USA Swimming would pay her for housing/living expenses and college tuition for a period of at least five years. Schubert also allegedly promised that Knutson would be provided with an Olympic coach, who turned out to be Sean Hutchison, and an Olympic training facility at the Fullerton Aquatics Sports Team (“FAST”) in order to prepare for the upcoming 2012 and 2016 Olympics. Knutson claimed that in reliance on Schubert’s promises, she moved to Southern California in the fall of 2010, enrolled at a local community college, and began training with Hutchison. However, within weeks, Knutson lost her swim coach, Hutchinson, as part of Schubert’s apparent coup to take over the Olympic Training Center. Specifically, Schubert, along with his longtime friend and colleague Bill Jewell, then president of FAST, allegedly retained a private investigator to conduct undercover surveillance and take compromising pictures of Hutchison. It is believed that this surveillance served as the impetus for Hutchison’s eventual departure from the club. Shortly thereafter, Schubert was terminated from his position of head swim coach. Knutson claimed that she was devastated by the ensuring turmoil. She also claimed that at or about that time, she began to have doubts as to whether USA Swimming, on the heels of terminating Schubert, intended to honor the promises that Schubert made to her. As such, she consulted with her agent, Evan Morgenstein, who recommended that Knutson retain his personal attorney, Foster, in order to enforce the contract. Foster was ultimately able to renegotiate Knutson’s contract, which now included performance markers. However, just over a year after the new contract was signed, Knutson failed to meet the markers and lost all of her benefits. Knutson claimed that the renegotiated contract by Foster set her up for failure, causing her to lose all of her benefits. Knutson and Law Offices of Mark B. Plummer, PC sued Richard Foster and his law officer, the Law Office of Richard J. Foster. Knutson alleged that Foster’s actions constituted a breach of fiduciary duty and fraudulent inducement and that the law firm was liable for Foster’s actions. Plaintiffs’ counsel contended that Foster collaborated with his longtime friend and head of USA Swimming, Chuck Wielgus, by engaging in “confidential” correspondence and entering into secret deals, including not involving the press and scaling back litigation to protect USA Swimming’s desire to avoid negative publicity. Counsel also contended that Foster worked against Knutson’s best interests while at the same time benefiting his “many friends” at USA Swimming, as well as his longtime client, Schubert. Plaintiffs’ counsel further contended that Foster failed to disclose to Knutson anything about his prior relationships with USA Swimming or Schubert. Knutson claimed that she was counseled by Foster to sign a renegotiated contract, which placed onerous performance markers on her. Specifically, the contract stated that Knutson had to consistently maintain a Top 3 USA, or Top 25 World, ranking in order to receive her contractual benefits. The original contract with Schubert had no such markers. Foster’s renegotiated contract also required that Knutson completely release both USA Swimming and Schubert from any and all liability. The plaintiffs’ expert, a law professor who specializes in Title IX issues and a decorated Olympic champion, opined that the performance markers negotiated by Foster set up Knutson for failure and placed undue pressure on her. Knutson claimed that the pressure caused her to develop a stress-induced eating disorder that primarily caused her to fail to meet the markers specified in the new contract, which caused her to lose all of her benefits in just over a year after the new contract was signed. Defense counsel argued that Knutson and Knutson’s counsel failed to prove causation., Knutson was one of most decorated swimmers in the country coming out of high school in 2010. She was a national champion and broke numerous high school records. Some of her records still stand, including one in the 400 meter individual medley as a 16-year-old in 2008. Knutson claimed that she believed that Foster had her best interests at heart and would aggressively represent her. Thus, she sought recovery of damages for her pain and suffering due to her emotional distress. She also sought recovery for her loss of financial support and educational benefits.
COURT
Superior Court of Orange County, Orange, CA

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