Gordon Rees Scully Mansukhani Boston Partner Stephen J. Orlando and Senior Counsel Shaun D. Loughlin recently obtained dismissals in multiple licensing complaints filed against GRSM’s client, the owner of a real estate brokerage, in several states by the client’s former business partner. Simultaneously, Orlando and Loughlin secured a favorable settlement in a related lawsuit filed against the former partner, ensuring that the former partner would no longer be able to engage in anti-competitive behavior.
The dispute arose out of a deteriorated real estate partnership. GRSM’s client owns and operates a real estate brokerage, while his now-former partner served as the brokerage’s broker-of-record. Following the former partner’s demand to buy him out of the business, to which GRSM’s client agreed, GRSM’s client installed a new broker-of-record to continue the business operations.
One year after the buy-out agreement, the former partner began his own real estate brokerage and simultaneously filed multiple complaints against GRSM’s client in Massachusetts, New Hampshire, and Connecticut, asserting various claims of unlawful real estate practices. The former partner asked each state’s real estate licensing board to permanently shut down GRSM’s client’s real estate business.
Orlando spearheaded the responses to each complaint, filing answers and requests for dismissal in each state, on the grounds that, at all times, GRSM’s client acted in accordance with applicable laws governing real estate practices. Meanwhile, Orlando and Loughlin together brought numerous causes of action against the former partner in Massachusetts state court, including breach of contract, abuse of process, and violations of Mass. Gen. Laws c. 93A for engaging in anti-competitive behavior.
Each state licensing board ultimately dismissed the claims levied against GRSM’s client and opted not to further pursue the request to shut down his real estate business. In the state court action, GRSM’s client and the former partner reached a favorable settlement agreement that included the former partner closing his competing real estate business.
This result illustrates the ability of GRSM’s Real Estate practice to assist its clients by engaging in multi-state and multi-jurisdictional disputes, utilizing the firm’s resources and deep bench to prevail on all fronts.