The collapse of the housing bubble back in the ‘00s caused a lot of substantial financial losses for many people, including investors. Even the suffering of major losses does not allow a party to a contract to get out of its obligations under that agreement, though. That was the takeaway of an $8 million plaintiff’s judgment awarded to our client in his breach of contract lawsuit against his investment partners in a condominium project. The other investors must still pay the millions of dollars they owed, even though the condo project failed and they sustained roughly $1 million in losses, the Daily Business Review reported.
The client, Abraham Cohen, held a roughly 20 percent stake in Blueview LLC, a company that was involved in developing a luxury condominium building near “a landmark Trump-branded property” in Doral. Cohen and several other investors contracted for the other investors to buy out his stake in Blueview, at a price of $5 million.
The parties consummated the agreement in 2007. At first, the investors made the payments, sending Cohen $950,000. By 2008, though, Cohen had stopped receiving the payments owed to him. This, of course, roughly coincided with the time that the housing market crashed.
Cohen sued for the money that was owed to him, asserting that the investors’ failure to pay constituted a breach of contract. The defendants tried to contest the case by launching counterclaims that accused Cohen of fraud, namely by misrepresenting the project’s degree of viability and his exit from the project, among other things.
After a successful motion for a directed verdict, Cohen proceeded to the damages phase of the trial. The trial court concluded that the defendants owed Cohen the remaining balance of the original $5 million amount, which was $4,050,000. In addition, the trial court ruled that Cohen was entitled to interest at the rate of 5% for 2007-08, which totaled $174,000. For the period from 2008-16, the rate was 12%, which meant that the total amount the defendants owed for that period was $3,964,000.
The defendants appealed, but the Third District Court of Appeal summarily rejected their arguments in an opinion released earlier this month.
This case was a victory not only for the client but also for the enforceability of contracts, even in the face of an avalanche of fraud claims by the parties who were in breach.
When the people or entities with which you partnered in a commercial contract make the decision to breach that agreement, there are several important steps you should take. One of the most important ones is to retain legal counsel who is skilled and experienced in commercial litigation and has a proven track record of knowing how to get results. The diligent South Florida commercial litigation attorneys at Stok Folk + Kon have been helping clients for many years in pursuing their business goals, including meeting their needs in commercial litigation.
Contact us online or by calling (954) 237-1777 to schedule your consultation and find out how this firm can help you protect your interests.
More blog posts:
Stok Folk + Kon Client Settles With Landlord in South Florida Breach of Contract Case, Florida Business Lawyers Blog, April 13, 2017
Recovering Attorneys’ Fees in Your Florida Breach of Contract Case, Florida Business Lawyers Blog, March 8, 2017