The plaintiffs brought an action for breach of contract regarding a Consulting Services Agreement (CSA) and a Transitional Consultant Fee Agreement (TCFA).
The defendants argued the CSA should be set aside due to fraudulent misrepresentation by the plaintiff consultant regarding a competing offer.
The court found that the plaintiff knowingly made a false representation that induced the defendants to enter the CSA, and therefore rescinded the CSA.
However, the court found the TCFA remained valid and enforceable, awarding the plaintiffs $150,000 under that agreement.
The defendants' counterclaim for damages was dismissed.
