Fees for services while waiting for executed letter of intent.

Practice point: Appellate Division found that the motion court confused defendants' counterclaim for legal and consulting fees as consequential damages for plaintiffs' alleged fraud with plaintiffs' claim for similar fees pursuant to the parties' letter of intent, and erred in finding that defendants had not proved damages, inasmuch as they were not obligated to do so in opposition to plaintiffs' showing.

Student note: Appellate Division also found that even if plaintiffs' motion was predicated on defendants' failure to show loss causation, because they had engaged their attorneys and consultants prior to entering into negotiations with plaintiffs, plaintiffs failed to show that defendants did not incur fees for professional services during their negotiations and while waiting for plaintiffs to execute their copy of the letter of intent.

Case: Abyssinian Dev. Corp. v. Bistricer, NY Slip Op 07374 (1st Dept. 2012).

Here is the decision.

Tomorrow’s issue: Liability for a fall down a winding staircase.