Blythe Holdings, Inc. v. DeAngelis

Hill formed Blythe Corporation to acquire vacant lots in Chicago and was Blythe’s sole owner and employee. Blythe entered into a contract with Flawless Financial, which was to acquire the lots; Blythe agreed to pay legal fees of $50,000 to the attorney recommended by Flawless (DeAngelis) and deliver a $25,000 retainer fee. Blythe signed a representation agreement that had been drafted by DeAngelis, an employee of Brown Udell, on Brown Udell letterhead, but never informed Brown Udell of the representation. Blythe remitted a $25,000 check, payable to DeAngelis which was deposited into the “John A. DeAngelis Client Fund Account.” DeAngelis never shared fees received from Blythe with Brown Udell. Blythe investors transferred $250,000 to the DeAngelis Client Fund Account. Following Hill’s instructions, DeAngelis transferred $249,978 to a Flawless account. None of those funds were ever used to purchase lots on behalf of Blythe. Forte, a Blythe investor, contributed an additional $250,000. DeAngelis submitted an Application for Purchase of Redevelopment Project Area Property to obtain the vacant lots. The Department of Planning and Development reviewed the application and indicated steps necessary to move forward. Blythe, however made no effort to amend its application or to pursue necessary approvals. Blythe did not respond to inquiries by DeAngelis; Hill “[could] not recall” what happened to the funds received from Forte. Blythe sued DeAngelis and Brown Udell, claiming legal malpractice and unjust enrichment. The district court entered summary judgment for the defendants. The Seventh Circuit affirmed. View "Blythe Holdings, Inc. v. DeAngelis" on Justia Law