In Lelin v. Shrestha , Ross Lelin, a licensed mortgage broker, sued his former clients, Manohar and Renu Shrestha, to recover an unpaid commission.
The Shresthas had hired Lelin to secure a $682,000 mortgage loan and his fee, according to a written agreement, was two percent of the loan amount upon Shresthas's acceptance of a commitment.
When Lelin later applied for two separate mortgages, one for $545,600 and for $136,400, the lender only agreed to offer $545,600.
After the Suffolk County District Court found that the Shresthas hadn't breached the agreement, because a $682,000 hadn't been obtained, Lelin appealed to the Appellate Term, Second Department.
Since the Shresthas could have rejected the deal, the AT2 was of the view Lelin was entitled to payment once the Shresthas opted to accept the reduced sum. As a result, the defendants ended up owing Lelin $10,912 -- two percent of $545,600 loan.
Doubt that met with the couple's approval.
For a copy of the Appellate Term's decision, please use this link: Lelin v. Shrestha