Cornell Grace Wins Summary Judgment In $2.9 Million Interference With Contract Case Against Educational Services Provider January 17, 2012

The law firm of Cornell Grace, P.C. won summary judgment on behalf of its client today in a breach of contract, fraud, interference with contract and unjust enrichment action.  The opinion was issued by Justice Eileen Rakower of the Supreme Court, New York County.

The matter involved a dispute over a charter school management agreement between plaintiff, an Educational Services Provider (ESP), and its former client, a charter school in New York.  The school fired plaintiff as its manager and had hired a new ESP as manager.  Plaintiff contended that the school breached the parties’ Management Agreement and owes it approximately $2.9 million pursuant to the agreement, and also that the new ESP, Cornell Grace’s client, had fraudulently and intentionally induced the school to breach, and had been unjustly enriched.

At the inception of the case, Cornell Grace won dismissal of the fraud and other claims against its clients, including the dismissal of individual claims against one the principals of its client.

On summary judgment, Cornell Grace argued on behalf of its client that the school had not breached its agreement with plaintiff, and in any event, that the evidence did not support any of plaintiff’s claims, including inducement to breach contract and unjust enrichment.  The Court granted summary judgment for the defendant ESP and dismissed all claims against it.