Barry Mallin & Associates P.C. v. Nash Metalware Co.

18 Misc. 3d 890
CourtCivil Court of the City of New York
DecidedJanuary 10, 2008
StatusPublished

This text of 18 Misc. 3d 890 (Barry Mallin & Associates P.C. v. Nash Metalware Co.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barry Mallin & Associates P.C. v. Nash Metalware Co., 18 Misc. 3d 890 (N.Y. Super. Ct. 2008).

Opinion

[891]*891OPINION OF THE COURT

Shlomo S. Hagler, J.

Procedural History

In or about October 2006, plaintiff Barry Mallín & Associates PC., formerly known as Mallín and Goldstein, PC. (plaintiff or law firm) commenced this action against defendant Nash Metal-ware Company Inc. to recover $10,200 for breach of an oral agreement to pay for legal services. Defendant interposed an answer to the complaint asserting that Nash Metalware did not authorize the law firm to perform legal services on its behalf, and the law firm is precluded from recovering any legal fees for failing to comply with the provisions of 22 NYCRR 1215.1.

Trial/Witnesses

The trial was conducted on November 7, 2007. Posttrial memoranda of law were submitted on December 7, 2007.

The named principal of the law firm, Barry Mallín, Esq., testified on plaintiff’s behalf. Defendants called Stephanie Eisenberg, the president of Nash Metalware, and Edward Lazarus, of Royal Engraving, as witnesses. This court credits the testimony of the defendant’s witnesses over the plaintiffs witness.

Findings of Fact

On or about May 11, 2005, the Mayor of the City of New York approved a certain change in zoning affecting the Greenpoint and Williamsburg areas of Northern Brooklyn, New York (Greenpoint-Williamsburg rezoning project or rezoning project). In the Greenpoint-Williamsburg rezoning project, the existing zoning and special mixed district designations would be changed, inter alia, to permit residential use on the waterfront and to restrict certain areas currently zoned for manufacturing use to light industrial use. The City of New York conducted an environmental impact statement (EIS) to assess various environmental effects of the Greenpoint-Williamsburg rezoning project.

A group or coalition of businesses adversely affected by the zoning changes formed to challenge the City of New York’s Greenpoint-Williamsburg rezoning project. This group included defendant Nash Metalware and Royal Engraving.

The group initially contacted Antonia Bryson, Esq., of the Urban Environmental Law Center who had been lead counsel in challenging a zoning change in Red Hook, Brooklyn. Ms. Bry[892]*892son was unable to exclusively represent the group due to other legal professional obligations, but she recommended three other law firms, including the plaintiff. On or about August 4, 2005, Ms. Biyson or Ms. Eisenberg scheduled a meeting with Mr. Mallín to discuss the case. On or about August 10, 2005, Mr. Mallín and an associate met with Ms. Bryson, and other representatives of the group, including Ms. Eisenberg and Mr. Lazarus. Mr. Mallín discussed many aspects of the case such as the lengthy EIS, the applicable four-month statute of limitations and the possible filing of a CPLR article 78 proceeding in Supreme Court, New York County, challenging the rezoning project. There was limited discussion of compensation except that Mr. Mallín initially agreed to a fixed legal fee of $60,000 for the prospective legal representation. However, Mr. Mallín later allegedly mailed Ms. Eisenberg a draft “Attorney Engagement Agreement” dated August 12, 2005 wherein the law firm agreed to fix the legal fee at $100,000, which also included “fees for counsel . . . [Ms. Bryson] and fees for experts and disbursements.” Plaintiff sought $50,000 upon signing of the agreement, $25,000 upon filing of the article 78 proceeding and the remaining $25,000 within 30 days thereafter. (Plaintiffs exhibit 1.) Neither Ms. Eisenberg on behalf of Nash Metalware nor any other member of the group executed the agreement.

At the meeting, neither defendant individually nor the group collectively retained the plaintiff to represent them as they were in the process of interviewing other prospective counsel. Ultimately, defendant and the group retained the service of another law firm that commenced an article 78 proceeding on their behalf.

Notwithstanding the fact that the agreement was not signed and no payment was tendered in accordance therewith, Mr. Mallín allegedly commenced legal representation on defendant’s behalf. Mr. Mallín allegedly expended about 77 hours but only billed for 34 hours in reviewing the lengthy EIS, researching cases and preparing a draft of the article 78 petition. Mr. Mallín conceded that he did not record his time contemporaneously with the work due to the looming statute of limitation deadline. However, when he was notified in early September 2005 that the group had selected another attorney, Mr. Mallín estimated that he had performed 34 hours of legal work at $300 per hour totaling $10,200 as of September 9, 2005. Nine months later, Mr. Mallín then generated a bill for legal services dated June 9, 2006 and sent it to the defendant for payment. The explanation [893]*893of fees merely indicated the total amount of time for many alleged tasks performed without an individual specific breakdown for each task and the corresponding time as follows.

“GREENPOINT-WILLIAMSBURG RE-ZONING CHALLENGE: Telephone Consultations with Client (Eisenberg); Telephone Discussions with Attorney Bryson; Meeting with Client and Potential Co-Counsel; Review of Environmental Impact Statement, particularly issues relating to business and employment impact and displacement; preparation of investigative questions for client an expert; commencement of draft of Article 78 Petition.” (Plaintiffs exhibit 2.)

While Mr. Mallín claimed he expended about 77 hours on the case, he conceded that the article 78 petition that he drafted was only about 75% complete in early September 2005, just a few days prior to the expiration of the statute of limitations deadline. (Plaintiffs exhibit 3.) The draft was a generic petition which did not reference any specific material from the EIS and lacked a caption, recitation of the parties, and a verification. Mr. Mallín did not send a copy of the draft petition to Ms. Eisenberg nor did Ms. Eisenberg sign it.

Conclusions of Law

Essential Element of “Meeting of the Minds” Necessary to Establish an Enforceable Oral Contract

There must be an “objective meeting of the minds” to establish an enforceable contract. (Matter of Express Indus. & Term. Corp. v New York State Dept. of Transp., 93 NY2d 584, 589 [1999].) “In order for a breach of contract to exist, there must be a meeting of the minds on the agreement said to have been breached.” (Miranco Contr., Inc. v Perel, 29 AD3d 873, 873 [2d Dept 2006].) A “mere agreement to agree, in which a material term is left for future negotiations, is unenforceable.” (Joseph Martin, Jr., Delicatessen v Schumacher, 52 NY2d 105, 109 [1981] [the failure to agree on the amount or consideration for future rental or sale is unenforceable].)

In this regard, plaintiff has failed to meet its burden of proof to demonstrate that the parties had a “meeting of the minds” concerning defendant’s alleged oral agreement to retain the plaintiff to legally challenge the Greenpoint-Williamsburg rezoning project. It appears that there is conflicting evidence as to the amount of compensation sought and no “meeting of the [894]*894minds” occurred between the parties. Specifically, Ms. Eisenberg and Mr. Lazarus credibly testified that Mr. Mallín only sought $60,000 at the August 10, 2005 meeting, while the draft agreement that Mr. Mallín allegedly sent to defendant set the plaintiffs fee at $100,000 and Mr. Mallín later billed defendant on a $300 hourly basis.

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Bluebook (online)
18 Misc. 3d 890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barry-mallin-associates-pc-v-nash-metalware-co-nycivct-2008.