Scott W. Spencer

Entrusted complex corporate matter to Attorney Spencer, involving fraudulent inducement to enter into a contract for the purchase of real estate, including a restaurant, outdoor concert venue, parking area, etc. The seller had represented that the tenant of an attached deli and wine shop was in de...fault of its obligations under the lease, in numerous ways. Upon completing the purchase our company would be able to evict the deli tenant and ourselves operate that aspect of the business. Records provided by the seller indicated the deli did just under $1 million per year in revenue. Because the way the deli was situated in the building, it would be an easy thing to construct a drive through to enhance the business, further. The property was the first business outside a community in which alcohol sales were prohibited. This fact also suggested a carryout would do well. After serving a notice to vacate on the deli owner he responded with an action to quiet title, representing the former property owner had waived all breaches of the lease. This ultimately proved to be true. Attorney Spencer explained that we would prevail in either instance. If we won the quiet title action -- which seemed unlikely given the tenant provided documents indicating the former owner had in fact waived the breaches -- we would be able to operate the deli and realize the additional revenue of $1 million. If we did not win the quiet title action we would pursue the former owner for fraudulent inducement. The quiet title action did go against us, and in the end we successfully pursued the former owner for damages due to his fraud in falsely representing that the opportunity to operate the deli would be included in the sale.