HOWARD M. SCHOOR, ASSOCIATES, INC. V. HOLMDEL HEIGHTS CONSTRUCTION COMPANY
343 A.2d 401 (1975)
NATURE OF THE CASE: Schoor (P), creditors, appealed a judgment, which reversed a judgment
entered in their favor in their action to recover monies allegedly owed by Holmdel (D),
debtor.
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.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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