According to TMZ, the 26-year-old actress hired New York lawyer Mark Heller instead, and relieved Holley of her duties just she was on the way to the courthouse to work out a plea bargain to avoid jail time. According to Cinema Blend, the two lawyers had split Lohan's cases based on location.
TMZ called the sudden move "one of the worst decisions of [Lohan's] life."
It's a stunning development -- given that Holley has taken heat for being too effective, keeping Lindsay out of the pokey in the jewelry heist case as well as several probation violation cases. And she's almost magically made some criminal investigations disappear.
Sources told the gossip website that Lohan immediately regretted the decision to fire Holley, who has spent years keeping the troubled star out of jail. Radar Online said Monday that Lohan owed Holley more than $300,000 in unpaid legal fees.
Lohan's hearing is scheduled for 11:30p.m. ET Tuesday.