Analysis and Consequences of Legal Action(S)

Topics: Contract, Common law, Law Pages: 16 (5253 words) Published: September 16, 2013
Legal Eagles, LLP

November 1, 2011
Analysis and Consequence of Legal Action(s)
To: Rebecca Warren
On behalf of Team A:

Factual Background3
Remedies for Negligence5
Statutes Governing Contract Law5
Tort of Negligence7
Other Considerations10
Analysis of Income11
Offer and Acceptance Analysis12

Per your request, our legal team, courtesy of Legal Eagles, LLP, wishes to advise you regarding your tentative legal action against Mechanics National Bank (“National Bank”). As you alleged, National Bank was negligent in their failure to remove a lien on your Lagoon Beach property. Our legal team has assessed this and other concerns of your case. Outlined throughout this correspondence are conclusions we have made and recommendations we wish you consider.

Before we proceed, we thank you for your trust and assure you nothing less than our highest-quality work.

You have expressed to us your interest in recovering compensation for a failed entrepreneurial endeavor involving a hotel property, Hotel California. You also informed us that your acquisition of this property was dependent upon your securing financing through pledging a property you currently own as collateral. In a brief analysis of the facts of your case, we find you may successfully prove liability on the part of National Bank; however, this conclusion is not without concerns, particularly regarding your contract with the owner of Hotel California. This concern and other considerations for your case are also discussed in this correspondence.

Factual Background
Our notes of the essential facts of your case indicate the following: You sought the acquisition of an existing hotel property located in Palm Desert, Green. You contacted the hotel’s listing agent, Mr. Babak Gordon, and obtained preliminary data on the property, including financial statements of the hotel which you have provided us. On January 5, 2005, the hotel owner, Ms. Shirley Ramirez, Mr. Gordon, and you had a preliminary discussion regarding the purchase and sale of Hotel California. Ms. Ramirez offered to you by phone this property for $4.3 million, excluding the furniture, and the sale was to conclude following a 45 day escrow. On January 6, 2005, you faxed Ms. Ramirez a signed letter both indicating your acceptance of her offer and your preference that the transaction close following a 60 day escrow. Although you never received a reply or confirmation from Ms. Ramirez, on January 30, 2005, you obtained a financing commitment from Bank of the West. Their conditions were that the bank would obtain a first priority lien on the hotel property along with an unrelated undeveloped parcel of land owned by you in Lagoon Beach, Green. As you have shared with us, you acquired this land in 1984 and had managed to pay off its mortgage on November 1, 2004. However, National Bank failed to remove its lien on the property. You vigorously attempted to get National Bank to remove its lien on this property. You contacted bank officers and explained to them that the lien needed to be removed so that you could pledge the property as collateral and finance your purchase of Hotel California. Because National Bank did not remove this lien, you were unable to finance the acquisition of Hotel California. You later bought a hotel property “similarly situated” and “virtually identical” to Hotel California for $4.7 million dollars.

From our analysis, we find as reasonable your decision to consider pursuing legal action against National Bank for damages. You have cited National Bank as negligent for failing to follow instructions regarding the removal of a lien from the title of your Lagoon...
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