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A law blog by Robert Lombardo on The Whole 9

Attorney Robert Lombardo came from the creative world and then began practicing law in 1995. The diversity of his professional life (years of which were spent in Europe, Australia and Japan) gives him a unique perspective on the law. Currently Robert is focusing on entertainment law (which encompasses nearly all creative industries) and brings this firsthand experience and desire to make the law accessible to the The Whole 9 community.

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Friends behaving badly?

January 29, 2010
3 Comments (see all)

 

Allison entered into a written agreement with her friend Lisa to design, decorate and furnish the interior of Allison’s new wine bar “Drinking Divas.”

The work was to be completed for a fixed fee of $50,000.

After completing about half of the work, Lisa asked Allison for half the contract price.  Allison agreed and paid Lisa $25,000.  The next day, Lisa assigned the remainder of her rights under the contract to her friend Jimmy “the Weasel” as security for a $20,000 loan.

Jimmy “the Weasel” immediately notified Allison of the assignment.

The following week, Lisa took off to Cabo San Lucas for a little “get-away” and has not been heard from since.  She abandoned the “Drinking Diva” project and defaulted on the loan from Jimmy “the Weasel.”

Allison eventually found another designer to complete the interior design of her wine bar to her satisfaction for an additional $20,000.

Jimmy “the Weasel,” unable to find Lisa, sues Allison for breach of contract.

You are the judge.  How do you decide?  Who gets what?

 

Any Resemblance to Actual Events or Persons Living or Dead is Purely Coincidental.

Answer below in comments later today.

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  1. awaken2sun

    No way Jose…Jimmy needs to go down to Cabo Wabo and pull Lisa out of the bar where’s she’s doing body shots and shake that money tree.

  2. biko

    Apparently Jimmy did find the tree – but by then it had no leaves on it.

    Anyway, Jimmy, as Lisa’s assignee of her rights under the “Drinking Divas” contract, is entitled to the rights which Lisa would have – to collect the $25,000 upon completion of the decoration of the wine bar.

    Unfortunately, Lisa breached the contract and is entitled to nothing – so Jimmy is entitled to nothing.

    Allison had the right to use the money she promised to Lisa to pay for completion of the wine bar.

    If it had cost Allison $45,000 to finish decorating her wine bar – and that amount was determined to be reasonable – she could have then sued Jimmy for $20,000.

  3. poorgood

    well, lisa probably hasn’t been heard from because jimmy the weasel had her knocked off. but i would have said that the rights do not transfer unless allison also agreed to it, and it looks like that is kind of the way it is. good one.

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