The plaintiff corporation, facing severe financial difficulties and mortgage default, sold a 75-acre property to the defendant developer in a 'no cash' deal, taking back mortgages on two other properties owned by the developer.
The plaintiff subsequently defaulted on loans secured by those mortgages and lost the properties.
The plaintiff sued the developer for fraud, conspiracy, and misrepresentation, alleging the developer inflated the values of the mortgaged properties.
The plaintiff also sued its real estate lawyer for professional negligence.
The Superior Court of Justice dismissed all claims, finding no evidence of fraud or conspiracy, and concluding that the lawyer met the standard of care given the plaintiff's dire financial situation and complete lack of bargaining power.
