Bruce R. Raines Associates, Inc. v. Whitman & Ransom

138 A.D.2d 95, 530 N.Y.S.2d 571, 1988 N.Y. App. Div. LEXIS 7264
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 28, 1988
StatusPublished
Cited by1 cases

This text of 138 A.D.2d 95 (Bruce R. Raines Associates, Inc. v. Whitman & Ransom) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bruce R. Raines Associates, Inc. v. Whitman & Ransom, 138 A.D.2d 95, 530 N.Y.S.2d 571, 1988 N.Y. App. Div. LEXIS 7264 (N.Y. Ct. App. 1988).

Opinion

OPINION OF THE COURT

Sullivan, J.

In May 1986, in response to a newspaper advertisement, Robert Thoms, an unemployed attorney with Middle East experience, contacted plaintiff, an executive and professional placement service, to solicit its assistance in procuring a legal position. Thoms then met with Renee Berliner Rush, the manager of plaintiff’s legal search division, who contacted the defendant law firm and, after speaking with its managing partner, forwarded to him a copy of Thoms’ resumé. Rush simultaneously wrote to Linda Rauzi, defendant’s recruitment coordinator, advising her that plaintiff’s fee with respect to associates is 25% of the associate’s first year’s compensation, including guaranteed bonus where applicable, "payable upon the commencement of such associate’s employment with your firm.”1

Thoms thereafter met with William Gnichtel, another partner of defendant, who, like Thoms, had spent some years working in the Middle East. A meeting was arranged between Thoms, Gnichtel and Salah Al-Hejailan (Salah), with whose law firm in Riyadh, Saudi Arabia, Gnichtel had been associated. Although defendant has various offices throughout the world, it is not clear from this record what relationship, if any, it has with Salah. Defendant claims that the relationship is limited to the occasional referral of business between the two firms.

In any event, negotiations took place among Thoms, Salah and Gnichtel during the summer and into the fall of 1986. An agreement resulted whereby defendant would sponsor Thoms [97]*97to serve as a full-time resident lawyer for Salah in Riyadh. This arrangement, characterized by the parties as a "secondment”, was to be on a three-month trial basis through January 31, 1987, during which any of the parties could terminate the agreement, and after which defendant was to confirm Thoms’ partnership status with it. Salah was to pay Thoms $6,500 in advance to cover his expenses in moving to Riyadh. After the trial period, the secondment was then to continue for a two-year term, commencing February 1, 1987, during which Salah was to provide Thoms with appropriate housing accommodations, furnishings and a car. He was to serve as the senior American lawyer in Salah’s office and resume Gnichtel’s role as a principal lawyer for certain specified clients, including Saudi American Bank and General Motors. Salah was to pay Thoms $15,000 per month, as well as a monthly secondment fee of $4,000 to defendant as long as Thoms continued to be seconded. In addition, a productivity fee, based on billings, was to be paid to Thoms, who was to remit the same to defendant. It was left to Salah’s discretion as to whether to pay defendant a percentage, from 7% to 15%, of "success fees” on account of its or Thoms’ efforts in Salah’s behalf. Collections by defendant on account of Salah referrals to its New York office, as well as amounts received by it as productivity fees, would be credited against the secondment fee.

By separate signed agreement, Thoms agreed to undertake "a special assignment for [defendant] to serve on a full-time basis as a foreign legal consultant, resident in Riyadh, to the Law Firm of Salah Al-Hejailan (LFSH).” It was further understood that the "terms of your secondment are set forth in a separate letter agreement (Secondment Agreement) between this Firm and LFSH”, to the terms of which Thoms had agreed. It was expressly provided that the Thoms-defendant agreement was subject to defendant’s receipt of a signed counterpart of the secondment agreement from Salah and that defendant would not be liable to Thoms if Salah breached the terms of the secondment agreement.

On October 24, 1986 Salah signed the formal secondment agreement, which had been forwarded to him by defendant on October 15, 1986, but only after he had unilaterally changed several of its terms. Notably, he had altered the two-year commitment to Thoms to an employment-at-will, terminable on one month’s notice, and compromised the formula for computing the productivity fee to be paid defendant. Defen[98]*98dant objected to these and other changes in the "agreement previously reached” and so informed Salah, who responded testily, complaining to Gnichtel that defendant had "always taken [his] verbal approval on various items” and ridiculing defendant’s "insistence” that Thoms occupy Gnichtel’s old office at the Salah firm and represent the same clients. Salah expressed his dissatisfaction with defendant’s insistence on a formal agreement by noting, "Now it sounds to me that hiring a lawyer is somewhat similar to the importation of grocery produce.”

In any event, after returning the signed secondment agreement, as modified, Salah advanced the $6,500 in moving expenses for Thoms, who arrived in Riyadh in early November 1986. Before departing, he wrote to Salah, on defendant’s stationery, to express his disappointment at the parties’ inability to conclude "this simple contract, revisions of which— almost exclusively in your favor—have consumed so much effort these past four months.” Thoms underscored his understanding that by "accepting, as I have from the beginning, your declarations of your good faith * * * a far greater burden of honor [is placed upon you] than would our cooperating on the basis of a written agreement.”

On November 3, 1986, defendant mailed for signature another copy of a secondment agreement including some but not all of Salah’s changes. It included an acknowledgement of Thoms’ receipt of the $6,500 allowance and a $15,000 advance on his monthly compensation. This document was never executed. As a result, defendant, by letter dated May 6, 1987, withdrew both its "proposed arrangement” as set forth in its November 3, 1986 letter and its commitment to make Thoms a partner at the conclusion of his trial period. As far as this record discloses, Thoms is still associated with Salah in Saudi Arabia. No secondment, productivity or success fee, however, has been remitted to defendant. Nor, in light of the May 6, 1987 withdrawal of its November 3, 1987 proposal, does defendant apparently expect to receive such fees.

Although defendant denies that it ever hired Thoms or that it has any employment commitment to him, in the Saudi Arabia section of the 1987 edition of Martindale-Hubbell, Thoms’ name immediately follows Salah’s under the Salah firm’s listing. His biography includes a listing as a partner in the defendant firm. In that same edition, under defendant’s listing, Gnichtel is listed as of counsel to the Salah firm in Riyadh, Saudi Arabia. Under a sublisting showing a Riyadh, [99]*99Saudi Arabia office, Thoms is listed as the resident partner. Gnichtel’s explanation is that he furnished such information both as to the Salah firm and the defendant firm in November 1986 in order to meet Martindale-Hubbell’s annual deadline for the 1987 edition. At the time, as he explains, "Thoms was leaving for Riyadh and Salah had given me oral assurances that when Thoms arrived pie] would sign the [secondment] agreement.” According to Gnichtel, all references to Thoms’ status with defendant, and any reference to Salah in its listing, as well as any reference to Gnichtel in Salah’s listing with Martindale-Hubbell, would be removed from the 1988 edition. We take judicial notice that this, in fact, has been done.

When defendant refused to honor its invoice for $45,000, representing 25% of Thoms’ annual salary, plaintiff commenced this action for breach of contract and unjust enrichment. After joinder of issue, both parties moved for summary judgment.

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Bluebook (online)
138 A.D.2d 95, 530 N.Y.S.2d 571, 1988 N.Y. App. Div. LEXIS 7264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bruce-r-raines-associates-inc-v-whitman-ransom-nyappdiv-1988.