3074 Centreville LLC v. M.A. Cohen & Co., Inc.

Court of Appeals for the Fourth Circuit·Decided April 23, 2025·No. 24-1054·Unpublished

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-1054

3074 CENTREVILLE LLC; WESTWAY SERVICES GROUP LLC; WESTWAY WORKPLACE LLC; WESTWAY ENTERPRISES LLC; JBM INVESTMENTS LLC; MARK WEBBER,

Plaintiffs – Appellees,

v.

M.A. COHEN & CO., INC.; MICHAEL COHEN, Defendants – Appellants.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. Michael Stefan Nachmanoff, District Judge. (1:23−cv−00860−MSN−IDD)

Argued: November 1, 2024 Decided: April 23, 2025

Before DIAZ, Chief Judge, and AGEE and BENJAMIN, Circuit Judges.

Affirmed in part, reversed in part, and remanded by unpublished opinion. Judge Benjamin wrote the opinion, in which Chief Judge Diaz and Judge Agee joined.

ARGUED: Gabriel Zachiah Doble, DOVEL & LUNER LLP, Santa Monica, California, for Appellants. Bryan Michael Killian, MORGAN, LEWIS & BOCKIUS, LLP, Washington, D.C., for Appellees. ON BRIEF: Gregory S. Dovel, DOVEL & LUNER LLP, Santa Monica, California, for Appellants. Matthew D. Klayman, Philadelphia, Pennsylvania, Colin S. Harris, MORGAN, LEWIS & BOCKIUS LLP, Washington, D.C.,

for Appellees.

Unpublished opinions are not binding precedent in this circuit.

DEANDREA GIST BENJAMIN, Circuit Judge:

Mark Webber and Michael Cohen have been on-again, off-again business partners since at least the late 1990s. For years, Cohen assisted Webber in securing financing for a commercial real estate venture in reliance on a purported handshake deal. After Webber informed Cohen that he would not receive an equity stake in the venture, Webber sued Cohen for declaratory judgment. Cohen countersued for breach of contract, promissory estoppel, and quantum meruit. Finding no “meeting of the minds” supporting the existence of a contract or “clear and unambiguous promise” on which Cohen could have reasonably relied, we affirm the district court’s grant of summary judgment on Cohen’s breach of contract and promissory estoppel counterclaims. But, finding genuine disputes of material fact remain on the quantum meruit counterclaim, we vacate the grant of summary judgment on the issue and remand for further proceedings consistent with this opinion.

I.

A.

Michael Cohen is a Northwestern Law-educated former real estate lawyer turned real estate broker and advisor. By his own account, Cohen has helped clients resolve “over $3.5 billion of commercial disputes” and close “over $2 billion of commercial real estate loans and sales.” J.A. 216, 147–48. Cohen offers brokerage services, for which he typically charges a commission, and real estate advisory services, for which he collects a

monthly retainer, through and on behalf of M.A. Cohen & Co., Inc. (“MACC”). 1 See J.A. 153, 261–339, 342–82, 845. Cohen’s brokerage services involve “[i]ntroducing a borrower and their project to a lender . . . [a]nd assisting in efforts to cause the lender to make a loan to the borrower.” J.A. 152. For brokerage services, Cohen charges clients a commission fee based on a set percentage of the closed loan’s value. J.A. 151. As described in agreements Cohen reached with nonparties, Cohen’s real estate advisory or “consulting” services involve “formulat[ing] strategies and supervis[ing] and participat[ing] in the execution of certain strategies to assist [a] Client with respect to [a] Matter.” See, e.g., J.A. 374. For advisory services, Cohen charges clients an initial fee and monthly fees, which are block-billed as a lump sum for the month in question without an itemized list of services performed. See, e.g., J.A. 333–35, 374.

Mark Webber is the chairman of Westway Enterprises, through which he owns and operates a variety of commercial real estate properties. 2 In 2008, Webber purchased a multi-tenant commercial property located at 3074 Centreville Road in Herndon, Virginia (“Herndon property”). Webber intended to develop the Herndon property as a Sensitive Compartmented Information Facility (“SCIF”). 3 But Webber’s interest in the Herndon

1

Cohen and MACC will be referred to collectively as “Cohen” throughout.

2

Webber and the LLCs through which he operates his real estate ventures (3074 Centreville LLC, Westway Services Group LLC, Westway Workplace LLC, Westway Enterprises LLC, and JBM Investments LLC) will be referred to collectively as “Webber” throughout.

3

A SCIF is “[a]n accredited area, room, group of rooms, or installation where sensitive compartmented information may be stored, used, discussed, and/or electronically (Continued)

property was subordinate to $26 million of debt held by a partner in the acquisition. With its high vacancy rates and expenses, the Herndon property could not service its debts, and Webber lacked the assets or equity necessary to secure financing for the property.

Webber and Cohen agree that these were the circumstances under which Webber approached Cohen for assistance. They also agree that Cohen performed and was paid for commission fee-based loan brokerage services related to real estate transactions involving the Herndon property and properties in Chantilly, Virginia; San Antonio, Texas; and St. Louis, Missouri. But the parties diverge on whether Webber engaged Cohen to provide any additional services. Webber claims he contracted with Cohen in 2009 for Cohen to provide only commission fee-based loan brokerage services. Cohen maintains that because Webber could not afford to pay Cohen’s monthly advisory fees, Webber offered to make him an equity partner in the expansion of Webber’s SCIF venture. To that end, Cohen claims that he provided Webber extensive advisory services outside of traditional brokerage services throughout that time, effectively offering his advice on improving the Herndon property and potential acquisitions on an on-call basis. While Webber acknowledges seeking and receiving non-brokerage advice from Cohen, he insists that those interactions were not advisory services.

processed, where procedural and physical measures prevent the free access of persons unless they have been formally briefed for the particular sensitive compartmented information authorized for use or storage within the sensitive compartmented information facility.” Sensitive Compartmented Information Facility Use (SCIF) Policy, Gen. Serv. Admin. (Dec. 14, 2020), https://www.gsa.gov/directives-library/sensitive-compartmentedinformation -facility-use-scif-policy (https://perma.cc/G73W-3QW9).

Cohen claims that throughout his time working on Webber’s SCIF venture, Webber made verbal assurances that Cohen had a 20% equity interest in the venture, thereby forming an oral contract. Cohen also claims that he was repeatedly held out as a partner in the SCIF venture during his and Webber’s conversations with lenders. In support of the alleged assurances and purported oral contract, Cohen points to various communications between himself and Webber beginning in 2017. But the various emails and draft agreements, including communications between the parties and their respective attorneys, disagree on the percentage of interest (20% vs. 25%), the nature of the interest (equity vs. debt vs. profit vs. distributable cash), whether the interest was conditioned on Cohen’s past or future performance, whether the interest was exclusively in the Herndon property or included other related properties, and assignment rights, among other issues. The parties’ communications proceeded as follows:

April/May 2017 During a phone call, Cohen and Webber discussed and (and Cohen claims, agreed to) Cohen’s owning a 20% equity interest in the LLC that held Webber’s interest in the Herndon property. Webber claims he explained over the phone that any agreement would be in writing, and to that end, he retained legal counsel to draft the proposed written agreements.

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3074 Centreville LLC v. M.A. Cohen & Co., Inc., (4th Cir. 2025).

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