Success and contingency fees. Giancarlo Stanton

by | Oct 25, 2024 | Firm News |

Creedon & Gill argued the commercial case of JLO Development vs. Amalgamated Bank in the Appellate Division of the Second Department on Tuesday, October 22nd, 2024.

In this case Amalgamated bank contracted with our client JLO to develop and subdivide a waterfront lot in Brooklyn and sell the parcels to the highest bidder. The compensation to JLO was to be a percentage of the profits of the sale. But at the 11th hour after, JLO had expended years on the project, Amalgamated pulled the rug out from under JLO, sold the lot as a single parcel and stiffed them on any fee.

The trial court in Nassau County erroneously decided that JLO could not collect on its success fee, or even be compensated on a quantum merit basis for the work that it had done.

The Appellate Court was hot during argument, and peppered Amalgamated with questions and remarks consistent with JLO’s argument that in incentive based compensation agreements New York imposes a  covenant of good faith and fair dealing which bars a party from doing any intentional or purposeful act that would deprive the other party of the right to receive the benefits of their agreement. It would be as if, we told the Court, as if the Yankees sat Giancarlo Stanton down in case six of the ALCS just to keep him from earning his bonus as ALCS Series MVP.

At least one of the Judges was a Yankee fan who appeared to appreciated that argument.