The high-drama legal feud between prominent law firm Fox Rothschild LLP and Colorado-based Sabalos LLC has come to a close, with the two parties reaching a confidential settlement in a bitter legal malpractice case tied to a failed $3 million real estate development.
In a Tuesday court order, Denver District Court Judge Jon Jay Olafson confirmed the resolution, instructing the litigants to file a stipulation of dismissal or status report within 28 days. The order cancels all future hearings, including what was expected to be a hotly contested trial.
Behind the Settlement: A Deal Gone South
The roots of the case stretch back to a real estate development project gone sideways—derailed after the unexpected death of Sabalos’ sole member. Sabalos was later slammed with a $2.4 million breach of contract judgment following a dispute with a former development partner.
In the aftermath, Sabalos turned its legal firepower on Fox Rothschild, alleging the firm had botched its defense strategy in the original lawsuit. The malpractice claim accused the national law firm of failing to adequately protect Sabalos’ interests during litigation—a misstep that, Sabalos claimed, led directly to the multi-million dollar judgment.
