Case Description
Our clients engaged in negotiations with a developer to form a partnership for the purchase and development of a property. The developer conducted separate negotiations with the property owner, while our clients remained behind the scenes. On the eve of signing — during the first COVID-19 lockdown — both the clients and the developer withdrew from the deal.
The property owner filed a lawsuit against the developer, alleging that a binding agreement had already been formed. The developer denied this claim but nevertheless filed a third-party notice against our clients, arguing that if he were found liable, responsibility for the failed transaction should rest with them, even though they had not taken part directly in the negotiations with the seller.
Status
The proceedings concluded with a settlement, under which our clients paid only a small fraction — a few percent — of the amount originally claimed against them.