Radar had a report earlier this morning about what exactly went down between Lindsay Lohan and that Betty Ford employee (now former employee) Dawn Holland, who Lindsay attacked in an alcoholic rage. It was as everyone suspected – “someone directly associated with Lohan’s camp” (MOTHER CRACKHEAD) said that they would pay off Dawn. The price: $25,000. Only that money never came. And chaos ensued.

The fired Betty Ford worker who accused Lindsay Lohan of criminal battery secretly cut a $25,000 deal with the Hollywood actress’ camp after refusing to testify against her, RadarOnline.com has exclusively learned. What’s more, a source also tells us exclusively that Dawn Holland fired her Los Angeles-based attorney Keith Davidson on Thursday afternoon after the payday never materialized. Davidson told RadarOnline.com that he is no longer representing Holland and says the decision was “mutual.”

The source continued: “Dawn agreed to a $25,000 payment from someone directly associated with Lohan’s camp,” a source with knowledge of the situation told RadarOnline.com. “Dawn wanted the amount paid upfront. But Lohan’s camp wanted to spread it out over a period of a few months, paying her in installments. That didn’t suit Dawn, so the parties then agreed, in principle, for Lindsay to participate in a sit-down television interview with Dawn.”

The plan was for Dawn’s camp to shop the interview to various media outlets.

“When the deal didn’t materialize, Dawn became frustrated, fired her lawyer and engaged new legal counsel.”

When asked by RadarOnline.com for comment, Davidson said: “It is true that Ms. Holland and I are not working together on this case or any other, and the decision was mutual. Without confirming or denying that there were in fact civil settlement negotiations, if in fact there were negotiation they would be confidential, and I would therefore be prohibited on commenting on it.”

It is not immediately clear if Lindsay was aware of the deal.

According to Holland, a drunk Lohan, 24, and two other female patients tried to sneak back onto the rehab’s premises by jumping a wall but were caught by security. But Holland, a recovering addict, retreated from the explosive charges she first made in a paid interview with TMZ.

As RadarOnline.com first reported, Holland told law enforcement she wanted charges of battery against Lohan dropped and then-lawyer Davidson said “nor will she be assisting any further in the investigation or prosecution”. The source stopped short of saying that the payment to Holland was struck to buy her silence and cooperation, a situation that would likely have legal repercussions.

The Riverisde County DA still has not made a decision on possible charges against Lohan from the Betty Ford incident with Holland and the Los Angeles County Probation Department and a Beverly Hills judge could still find that the troubled star violated probation.

[From Radar]

Just a few hours after this report came out, more sources “close to Dawn Holland” went to Radar and gave them more interviews. They claim that there never was a specific “deal” with Lindsay or Team Lohan. A source tells Radar: “There was never even a deal set in place to begin with; it was an idea. There was no deal. It was never brought to Dawn. She never got any friggin’ specifics, that’s the problem. That is the problem that is the issue here. That is why she sought another attorney.” Apparently, Dawn and her first lawyer did discuss the idea of a payoff, and that Dawn was “aware” of the negotiation because she’s in dire need of money. She’s broke, and Betty Ford is withholding her workman’s comp.

So… why didn’t Dina just pay the relatively paltry sum of $25,000 to make this go away? Did they not have the money? Isn’t Lindsay staying in a $8000-a-month rental so she can stalk Samantha Ronson?

Photos courtesy of Fame.