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EXCLUSIVE: Dr. Phil's 'Financially Drained' Designer Suing Him; She's Forced OUT Of Bankruptcy Court: Lawyer


Apr. 8 2011, Published 11:49 a.m. ET

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The interior designer who filed a multi-million dollar lawsuit against Dr. Phil and his wife has abandoned her bid for bankruptcy, because she can't afford it, has exclusively learned.

In a bizarre twist in Brynja McGrady court filing for Chapter 13 protection, her lawyer told the woman was forced to backflip because the TV talk show drained her financial resources.

Chapter 13 allows individuals to undergo a financial reorganization supervised by a federal bankruptcy court.

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But Dr. Phil challenged some of McGrady's claims to the court, forcing her to either respond through, one, engaging a lawyer or, two, dropping the case altogether.

"They knew financially they could drain her," the woman's lawyer Kevin Simon, of law firm Simon and Resnik, told

"The reason the case was dismissed was because Dr. Phil's side propounded her with legal work.

He added: "She couldn't afford to stay in both bankruptcy and state court and put food on her table."

Simon said the paperwork filed in the case was "the likes that I haven't seen before."

"I have never seen so much litigation in a Chapter 13 case," Simon said.

"As far as litigation this is the most litigated Chapter 13 case that I've been a part of and I've filed over 1000 since 2009."

As first reported, McGrady filed for bankruptcy last November, causing her civil lawsuit against the McGraws' to stall.

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She and a business pal are suing the famous family for $7 million, alleging breach of oral contract, fraud, false advertising and intentional infliction of emotional distress.

The pair alleged the McGraws' agreed to promote their skin care line on Dr. Phil's show, but failed to do so.

It also alleged Robin took credit for their work.

Said McGrady's lawyer: "I tried to talk to the bankruptcy counsel for Dr. Phil and told them I would agree to stipulate to issues and they weren't interested.

"They made it very clear that attorneys fees on the other side were unlimited... they made abundantly clear money was no issue.

"They used all legal means at their disposal to make it so financially prohibitive for her that she could not stay in this case."

The legal eagle said McGrady is almost certain to lose her car as a result of the dismissal.

A call to the McGraws' attorney has not yet been returned.



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