The May 11, 2015 edition of Massachusetts Lawyers Weekly included an article entitled "Bank Awarded $3.2M over Planet Fitness Deal" which described the award handed down by a federal judge in favor of Todd & Weld's client. After a bench trial held before the United States District Court for the District of Massachusetts, Todd & Weld attorneys, David H. Rich and Julie E. Green, obtained a $2.525 million verdict in favor of their client, a Boston-based investment banking firm. With prejudgment interest, final judgment entered in the amount of $3.2 million.
The case arose from Todd & Weld's client's work in connection with the sale of Planet Fitness to a private equity firm in the fall of 2012. After completing the sale, Planet Fitness refused to pay the investment banking fee, contending that the fee was not covered by the parties' written contract. After a week-long bench trial, the Court (Stearns, J.) rendered a 60-page decision concluding that the parties' written contract did not provide a basis for recovery. However, the Court concluded that where the investment banking firm conferred a measurable benefit upon Planet Fitness, where the investment banking firm had a reasonable expectation of compensation for the services it provided, and where Planet Fitness accepted the service with knowledge that the investment banking firm expected to be compensated, the Court awarded damages under a quantum meruit/unjust enrichment theory of recovery. The article stated: "Ruling seen as 'textbook' case for equitable remedies."
Click here to read the entire Lawyers Weekly article.
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