Swervo Entertainment Group, LLC v. Mensch

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The District Court for the Northern District of Illinois dismissed in part and refused to dismiss portions of a complaint against an attorney.   The attorney allegedly agreed to hold an advance deposit in escrow and release it if the attorney’s client and the depositor did not reach an agreement.    An agreement was not reached, but the attorney did not release the funds allegedly deposited in escrow.   The court held that the plaintiff stated a claim for fraud (the attorney allegedly never intended to return the funds) and breach of the escrow agreement.   The court further held that the plaintiff’s claim for negligence was barred by the Moorman doctrine, its claim for breach of fiduciary duty was duplicative of the claim for breach of the escrow agreement, its quasi-contract claim was barred by the existence of an actual contract and its claim for attorneys’ fees was barred by the “American rule” barring attorneys’ fees in ordinary litigation.

Swervo Entertainment Group v. Mensch

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