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Problems in Legal Ethics Keyed to Schwartz, 14th Ed.
Ruskin v. Rodgers
Citation:
79 Ill.App.3d 941, 35 Ill.Dec. 557, 399 N.E.2d 623 (1979)Facts
In May 1977, Rodgers learned about a luxury apartment building for sale at 1550 North State Parkway in Chicago. After expressing interest in purchasing the building for $2.7 million, Rodgers approached Ruskin for assistance in acquiring and converting the property to condominiums. On June 16, 1977, they signed a memorandum of understanding agreeing to work together to purchase and convert the building, with profits to be split equally. Both parties then sought financing for the project. A misunderstanding occurred when Carlins, an attorney working with Ruskin, contacted the seller’s representative about a potential $2.5 million offer, which was rejected as being below the non-negotiable $2.7 million price. After this incident, Rodgers contacted Robert Sheridan, who agreed to purchase the building. Rodgers negotiated a deal with Sheridan that excluded Ruskin. Ruskin maintained that Rodgers never informed him that their agreement was terminated, while Rodgers claimed he had done so. Ultimately, Sheridan purchased the property, and Rodgers received substantial compensation from the transaction.
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