Adam Leitman Bailey, P.C. was retained by a commercial real estate brokerage firm that was defrauded of its duly earned commission through an elaborate scheme by several defendants. In short, our client provided brokerage services to two different sets of prospective buyers, who were provided confidential information on a commercial building in a prime location in Midtown Manhattan. These defendants later conspired and defrauded our client of its duly earned brokerage commission through an elaborate scheme.
In 2009, a prospective buyer used our client’s brokerage services and received confidential information concerning a large commercial building in Midtown Manhattan. The buyer is a major hotelier who specializes in a particular type of hotels, and needed a suitable building. An offer was submitted on behalf of the prospective buyer, which was rejected, and it appeared that the prospective buyer was no longer interested.
Later in 2009, a second potential buyer entered into a confidentiality agreement with our client and was shown the property. This contract required this buyer to pay our client $750,000 upon the purchase of the property. Unbeknownst to our client, the second buyer conspired with his girlfriend to create another company in her name, so that he could submit offers on behalf of her and avoid paying a brokerage commission to our client. The second potential buyer claimed that it would be the developer on this deal, not the purchaser.
The broker who represented the seller, during a telephone call, accidentally tipped off our client that the second buyer was in a deal to buy the property.
The first potential buyer entered into a partnership with the second buyer whereby they paid a brokerage commission that was $550,000 less than what was owed to our client under the terms of the confidentiality agreement.
Adam Leitman Bailey, P.C. commenced a lawsuit against both sets of buyers asking for $750,000 in damages plus interest. Both sets of buyers refused to settle for a reasonable amount, so Adam Leitman Bailey, P.C. attorneys went to work at what they do best: aggressive and creative lawyering. The Defendants had a history of unresponsiveness to Adam Leitman Bailey, P.C.’s discovery demands, and Adam Leitman Bailey, P.C. attorneys continued to send discovery demands following up on the links between all defendants. As expected, the Defendants refused/failed to comply. Defendants’ non-compliance resulted in several orders from the Court authorizing the Plaintiff to move for sanctions. Adam Leitman Bailey, P.C. attorneys brought a motion for discovery sanctions, which resulted in the Defendants’ pleadings being stricken from the case. Because the pleadings were stricken, default judgment was entered against these defendants in favor of our client.
After a recent hearing on damages, a decision was issued in our client’s favor to award attorneys fees in the amount of approximately $22,500 (for defendants’ non-compliance with discovery) and compensatory damages in the amount of $750,000, plus interest. The anticipated judgment from this action, with interest, is approximately $1,200,000.
Adam Leitman Bailey, P.C. attorneys John M. Desiderio and an associate handled the prosecution of this action.