1250 Broadway, 27th Floor New York, NY 10001

LIVING BY THE AMERICAN RULE

Because Medical Arts-Huntington Realty got into a dispute with 214 Wall Street Associates over a piece of property, and the parties wanted the deal to close, they entered into a "Survival Agreement"--which preserved all disputed claims and granted the "expenses of litigation" to the winner.

After a lawsuit was filed, a jury found in Medical Arts's favor. Although it was awarded $56,146.79 in expenses, and over $123,000 in fees, when Medical Arts experienced difficulty enforcing the judgment, it tried to recover those additional legal costs.

Since fees are only recoverable when authorized by some statutory authority or a specific contractual provision, and the parties' agreement failed to contemplate post-trial costs, both the Suffolk County Supreme and the Appellate Division, Second Department, denied the additional charges sought.

That's the state of the Medical Arts?

To view a copy of the Appellate Term's decision, please use this link: 214 Wall St. Assoc., LLC v. Medical Arts-Huntington Realty

Categories: