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"Case Studies" > Business - Breach of Contract > Investors Saved from One Bad Deal Angry They Weren’t Invited Back

Investors Saved from One Bad Deal Angry They Weren’t Invited Back

Summary:


This exhibit portrays the plaintiffs lurking in the background while the
second investor negotiated the five factors that hindered the property.
After the second investor cleared all of the hurdles, the plaintiffs then
surfaced to claim part of the prize.

Plaintiffs hired defendant to extricate them from a property purchased at auction from the Resolution Trust Corporation because the intended future site of a residential subdivision was burdened with a toxic dumpsite. In addition, several other encumbrances made the deal even less attractive. Defendant was made a limited partner of the purchasing group and successfully engineered an RCT buyback, netting plaintiffs a handsome profit. Afterward, the limited partnership was dissolved.

Soon thereafter, defendant approached a third-party investor about the upcoming resale of the property. After that investor bought the site and successfully developed it, plaintiffs demanded part of those profits in compensation for being left out of the second investment opportunity by their former fellow limited partner.


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