Howard M. Schoor, Associates, Inc. v. Holmdel Heights Construction Company

343 A.2d 401 (1975)

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Nature of the Case

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Facts

D was in the process of developing a tract of land. Sugarman (D), owned slightly more than 18% of the capital stock of and at all relevant times acted as its attorney. Ps were engaged to do surveying, engineering, and professional planning work in connection with the development. The amount of their fees was not fixed by agreement, but there has never been any dispute as to the reasonableness of their charges. Some of the invoices they submitted to D were paid, but others were not. A meeting was held about unpaid bills. Ps alleged that Sugarman personally agreed to pay all outstanding bills as well as any charges that might be incurred in the future if Ps would continue with the work they were doing. Sugarman told Ps that D had no money. Sugarman gave Ps a check for $2,000. Sugarman states a different story and denies a guarantee of any kind. Ps left the meeting and continued working. Sugarman sent another $1,000, and Ps were told that D had no money. Ps brought this action to recover amounts due for professional services rendered by them to D. Holmdel is in receivership, and the suit has proceeded, solely against Sugarman. Ps claim is that Sugarman personally undertook to pay for the services rendered. Sugarman claimed he made no promise to do so, and upon the legal ground that even had he made such a promise, it would be unenforceable under the Statute of Frauds. The judge found in favor of P in the amount of $24,105.30, but the Appellate Division reversed. Ps appealed.