The firm's lawyers stated in their court papers that she was let go for poor work habits and for not getting along with Shapiro.
Lawyers for James and the Christensen law firm appeared before Los Angeles Superior Court Judge John Shepard Wiley Monday, saying both sides agreed to all terms and that the defense will prepare the final document for signatures.
Wiley said he was pleased to hear of the agreement in principle. "To try this case would have been nasty," Wiley said. "Neither side would have had a pleasant experience." The judge said the settlement avoids the uncertainty James and the Christensen law firm would have faced had the case gone to a jury, which was scheduled for trial Sept. 11. He urged the lawyers to put the settlement in final form soon before any last minute disagreements develop.
"Let's get this in the can," Wiley said.
Outside the courtroom, James' lawyer, Patricio T. Barrera, said the terms are confidential and therefore his client, who was present in court, cannot comment.
However, James said she currently does temporary work and now is "contemplating going to law school."
James said that despite her conflicts with Shapiro, she also had many good experiences working with him and at the law firm.
Shapiro and the law firm won dismissal of the case from another Superior Court judge last year, but a panel of the 2nd District Court of Appeal in July 2006 reinstated her lawsuit against the firm only.
In March, James and her former attorney, James K. Autrey, told the judge that serious disagreements had developed concerning his handling of her case. "There's been a complete breakdown in our ability to work together," Autrey told Wiley.
The judge told James that she should find another attorney if she had to.
James eventually replaced Autrey with Barrera. Monday, Wiley praised her for doing so.
"Miss James, you took my advice ... and got a great lawyer," Wiley said.
Shapiro's clients have included O.J. Simpson, Darryl Strawberry, porn star Linda Lovelace and the late Johnny Carson.
