Design Duo vs Ira and Irene – Decision

An adjournment would not resolve the case, as both parties could then contest Design Duo’s actual out of pocket costs at another trial.

I could find in favor of Design Duo for the full $4,000 down payment, as that is what the contract said. However, Design Duo’s fee was to be earned upon approval of the plans by Ira and Irene, making their case for 50% of their final fee somewhat weak.

If an award in any amount for Design Duo is entered against Ira and Irene, the national credit agencies that issue credit scores will publicly disclose that fact, which will damage their credit scores, making it costly or impossible for them to obtain any future credit.

I advised the parties to consider entering into a negotiated stipulation of settlement between them, with strict enforcement if Ira and Irene failed to make the agreed payments. This would keep the dispute private, and finally settle it.

After some discussion between the parties, the case was settled by a mutual agreement of the parties for $2,500, permitting Design Duo to enter judgment against Ira and Irene in the sum of $4,000 if they did not pay the settlement within 10 days.

Do you agree?

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2 thoughts on “Design Duo vs Ira and Irene – Decision

  1. The settlement of $2,500 for Design Duo is a good settlement for both sides. It sounds like Ira and Irene caused this problem by failing to take a good look at Design Duo’s portfolio. And their failure to pay the design firm’s up front fee was not exactly fair. Although they may not have liked Design Duo’s entire solution, no doubt they learned many things from the design process and plans at the expense of Design Duo. Design Duo was smart to pull the plug when they did and without taking legal action they probably would not have gotten the $2,500.

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