Dagny Knutson Verdict In Fraud Case Against Attorney Upheld by Appeals Court

Photo Courtesy: Andy Ross

Dagny Knutson saw a verdict reinstated by a California appeals court on Wednesday in her fraud case against attorney Richard Foster, the Orange County Register reported.

A three-judge panel for the California Court of Appeals 4th Appellate District ruled that Orange County Superior Judge Theodore R. Howard’s decision to grant Foster a new trial was based on “erroneous legal theories,” the Register reported.

In 2016, an Orange County Superior Court jury awarded Knutson $647,800 for breach of fiduciary duty by Foster.

The appeals court Wednesday reinstated the damages.

The original suit claimed that Mark Schubert, USA Swimming National Team Director at the time, made a deal with Knutson to support her national team training at a newly established National Center of Excellence in Southern California. However, Schubert was placed on leave by USA Swimming two months into the program and was eventually terminated.

Knutson was then told by USA Swimming officials that only part of the agreement would be honored.
Knutson, encouraged by Foster, accepted a financial agreement with USA Swimming that was worth less than the original Schubert deal.

The jury returned a verdict that said Foster willfully concealed information while advising her to accept a financial settlement with USA Swimming. Discovery documents revealed confidential, behind the scene discussions with Foster and Chuck Wielgus, Executive Director for USA Swimming, that helped convince the jury that Foster was not representing Knutson’s best interests.

Click here to read the original report from the Orange County Register.