Equitable Lumber Corp. v. Ipa Land Development Corp.

344 N.E.2d 391 (1976)

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Nature of the Case

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Facts

Equitable Lumber (P) entered into a contract with IPA (D) a builder and developer in which P agreed to supply D with lumber and building materials required for construction projects on various plots of land in Suffolk County. On the reverse side of the contract under the TERM and CONDITIONS there was a clause that if the Buyer breaches the contract and enforcement was necessary, and collection was turned over to an attorney, Buyer agrees to pay Seller a reasonable attorney’s fee and if the matter is turned over to collections such a reasonable fee is deemed to be 30% of the amounts due. D took delivery of materials and then refused to pay, terminated its operations and abandoned its office. P sued for recovery of the monies due and attorney fees. P got the verdict for $3,936.42, and the court held that P was entitled to also recover the reasonable value of its attorney’s fees but declined to enforce the 30% provision. The court conducted a hearing and determined that the attorney had performed 10 hours of work. The court set the fees at $450. The Appellate Division modified that part of the award to $750. P appealed claiming that both courts erred in disregarding his provision for liquidating attorney’s fees.