Yanan Li

The applicant brought a motion to set aside an administrative dismissal of a bill assessment proceeding against the respondent law firm.

The assessment had been adjourned sine die pending the outcome of a separate negligence action against the firm, which was ultimately dismissed.

The firm argued the assessment should not be restored because the negligence trial already determined the firm's conduct.

The court rejected this argument, noting that while the finding of no negligence is res judicata, an assessment officer must consider other factors under the Cohen test to determine the reasonableness of fees.

The court granted the motion to set aside the dismissal but denied costs to the applicant because his non-lawyer daughter submitted fake case law in his factum.

The plaintiff purchased a spa business from the defendant for $85,000.

Shortly after closing, the municipality ordered the business to shut down for operating as an unlicensed body-rub establishment.

The plaintiff sued for rescission or damages, alleging breach of contract and negligent misrepresentation.

The court found that the defendant breached the contractual representation that the business was operating in compliance with zoning and governmental regulations.

However, the court dismissed the negligent misrepresentation claims due to lack of reliance and failure of proof.

The court awarded the plaintiff $35,000 in damages, applying a 50% reduction for contributory fault because the plaintiff failed to make reasonable inquiries about licensing prior to closing.