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Civil Procedure Keyed to Cross
Friedman v. Hartmann
Facts
Friedman and other investors (collectively known as “Plaintiff’s) made an agreement with Hartmann, Defendant, to invest in the expansion of commercial properties in Connecticut. One of the properties was supposed to be a shopping center. Plaintiffs invested $600,000 to buy the property. Upon purchase, the agreement stated that there was not a broker involved in the deal. Nonetheless, Plaintiffs’ allege that Defendant and various developers were actually involved in the transaction. However, it was kept a secret to Plaintiffs that a broker was involved because, had it be disclosed, Plaintiff would be required to pay $1 million commission at closing. Plaintiffs brought suit against Defendant to reclaim their $600,000 investment alleging fraud and misrepresentation, breach of contract, and violations of the Racketeer Influenced and Corrupt Organizations Act. Defendants impleaded their attorney, Kathy Priest, Priest’s law firm, and James O’Connor (collectively known as “third party defendants”). Defendant’s alleged that third-party defendants committed malpractice by advising Defendants they did not need to disclose the broker’s commission to Plaintiff. Further, Defendant alleged they have a right to contribution and indemnification from the third party defendants. The third-party defendants motioned to dismiss the case alleging Defendants failed to state a claim on which relief can be granted.
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