Cosgrove v. Bartolotta

150 F.3d 729 (7th Cir. 1998)

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Nature of the Case

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Facts

Bartolotta (D) wanted to open a new restaurant in Milwaukee. He asked Cosgrove (P) for help. D wanted a $100,000 loan from P plus P's business and legal advice, P was an experienced corporate lawyer. D promised P to repay the loan with interest within three years but also to give P a 19 percent ownership interest in the restaurant. P assisted D in negotiating the lease of the restaurant premises and the loan from the bank, and it was on P's advice that the venture was organized in the form of an LLC. P never actually made the loan and was never given an ownership interest in the restaurant. D obtained alternative financing and cut P out of the deal. The restaurant opened and was a success, and hence this lawsuit. The jury found against P on his breach of contract claim, but this was not inconsistent with its finding promissory estoppel. P and D never worked out the exact terms under which P would receive a share in the restaurant.