Schlam Stone & Dolan LLP v. TRG Global Corporation

Summary

This Report and Recommendation addresses Schlam Stone & Dolan LLP’s motion for default judgment against its former client, TRG Global Corporation, for unpaid legal fees. The court recommends judgment on the breach of contract claim under New York law, finding an enforceable agreement despite the absence of a signed retainer letter, and recommends awarding $128,080.96 in unpaid fees, accrued and continuing interest, and reasonable attorneys’ fees and costs. The account stated claim is deemed duplicative of the breach of contract claim.

Holdings

1. A defaulting defendant admits the well-pleaded factual allegations, but the court must independently determine whether those allegations state a plausible claim for relief under Rule 12(b)(6).
2. An unsigned agreement may be enforceable where the non-signatory proceeds pursuant to its terms, allowing an inference that the non-signatory assented by performance.
3. A plaintiff asserting breach of contract must establish an agreement, adequate performance by the plaintiff, breach by the defendant, and damages.
4. Where an account-stated claim arises from the same facts as a breach-of-contract claim and seeks the same damages, the account-stated claim is precluded as duplicative.
5. The retainer agreement entitled Plaintiff to recover $128,080.96 in unpaid fees, 9% annual simple interest of $29,781.50 through January 15, 2026 plus $31.58 per day thereafter until judgment, and $67,762.23 in reasonable attorney's fees and costs.

Questions Presented

1. Whether the court had subject-matter jurisdiction, personal jurisdiction, and proper venue.
2. Whether service of process on TRG's authorized agents was sufficient.
3. Whether Defendant's default established liability on Plaintiff's breach-of-contract claim under New York law.
4. Whether the account-stated claim was duplicative of the breach-of-contract claim.
5. Whether Plaintiff was entitled to unpaid fees, contractual interest, attorney's fees, and costs on default judgment.

Disposition

other