NOTEWORTHY SETTLEMENT: BREACH OF CONTRACT CLAIM, EASTERN DISTRICT OF NEW YORK

James Walsh recently resolved a property damage and loss of revenue case involving an alleged leak in a commercial shopping center for less than 3% of the plaintiff’s initial demand of $250,000. The case involved a Georgia corporation with stores in New York and a Queens, NY plaintiff. James promptly removed the case to the Eastern District of New York based upon diversity jurisdiction. Thereafter, James vigorously pursued discovery and uncovered abnormalities in plaintiff’s purported proof of loss. Thereafter, James subpoenaed non party witnesses alleged to have performed significant remedial renovations. The subpoenaed non party witnesses undermined the plaintiff’s claims significantly. Thereafter, James filed a Rule 11 letter for sanctions along with a Rule 68 offer of judgment. Plaintiff promptly accepted the Rule 68 offer despite the nominal value and plaintiffs prior lofty demands. It is notable that plaintiff accepted an offer well below an initial offer made in the case.