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Wells Fargo Bank v. Palm Beach Mall

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The court granted summary judgment in favor of the defendants.

Retained by Wachtell, Lipton, Rosen & Katz

Defense counsel retained Cornerstone Research and Professor David Ling of the University of Florida in a damages case involving breach of contract for a mall in Palm Beach County, Florida. The plaintiff alleged that the mall had been mismanaged, leading to loss of tenants and the defendant defaulting on a loan.

Professor Ling testified on the economic conditions of the mall and surrounding geographic region, as well as changing trends in mall management. Professor Ling showed that the mall had been in economic decline for many years, due to a changing retail landscape in the area.  In particular, the mall experienced a significant increase in competition from new malls and shopping areas that were constructed in the surrounding area.  As a result, the sales for the major anchor tenants in the mall were in decline and the mall was having difficulty retaining tenants.  While there was a plan to turn around the mall, the financial crisis that started in late 2007 substantially reduced the availability of financing for large construction projects and as a result, the mall was unable to complete its planned turnaround.

The court granted summary judgment for our client.

For more information on this case, contact David Marcus.