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Updated over 5 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Sacramento, California United States
4
Votes |
8
Posts

Threatening letter buyer's attorney for breach of contract

Account Closed
  • Rental Property Investor
  • Sacramento, California United States
Posted

I'm unlicensed architect, I sold a duplex with entitlements for a lot split and infill single-family. I created the construction documents for the proposed design but chose not to pursue development and sold the property instead. The design of the single-family was not part of the purchase and sale agreement for the property or advertised as such. As per the contract I delivered copies of all the drawings in my possession but did not release the rights to use them or agree to transfer the digital files. 

The contract was for the purchase and sale of the property and nowhere in the contract does it include assignment of intellectual property rights. I offered to cooperate with the buyer and share the drawings for a reasonable fee. 

Today, I received a letter from his attorney requesting I assign all intellectual property rights to my design or agree to damages ($250,000) or to mediation. 

So, who here has gone to mediation? From my perspective, the buyer would rather compensate their lawyer for my design than to compensate the designer. 

Happy Friday, thank you for your thoughts. 

Most Popular Reply

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J Scott
  • Investor
  • Sarasota, FL
17,195
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17,995
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

I'm not a legal professional, so take this for what it's worth...

I would recommend that you find a good real estate litigation attorney, use the upfront consultation to determine whether the other party has a case or not, and then go from there.  If the attorney says that the other party might have a case (for whatever reason), it may just be easier to transfer the intellectual property.  If the attorney says they have no case, then you need to decide how much time/effort/money you are willing to expend to fight. 

It's not a fun process, even when you win.  I spent over two years fighting for $50,000 that I was owed.  I got it, but I'm not sure the two years of wasted time and energy was worth it. 

The other big question you need to ask the attorney is whether you'd be entitled to legal fee reimbursement should you win the case -- this is likely addressed in the contract.  Assuming you'd be entitled to attorney fees, it may be worth a strongly worded letter from your attorney laying out your side and reminding the other party and his attorney that it will get expensive should they pursue the case and lose.

There's a good chance that the other party figured it was worth $200 to have his attorney write a letter in the hopes of scaring you.  He may be prepared to back off should you resist in any way.

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