The law firm of Baradat & Edwards represented Edwin Loeb in a personal injury action. During mediation the attorney-client relationship between Loeb and attorney David Edwards eroded. Loeb later contacted defense counsel and indicated a willingness to settle the litigation for liability coverage limits of $100,000.

The defense attorney likewise indicated willingness to settle on the terms of the offer of compromise. The attorney sent Edwards a request for dismissal and a receipt and release.