Sued by a Consultant, Agency, or Finder Over Fees?
A consultant, marketing agency, developer, staffing firm, or advisor has sued your business claiming it is owed fees, a retainer, or a success fee. Here is what these cases usually turn on in New York.
Tell Me About the CaseWhat These Lawsuits Look Like.
Fee suits by service providers are filed in New York Supreme Court every week. A marketing or digital agency says its monthly retainer went unpaid. A software developer bills for work the business says was never delivered. A consultant or advisor claims a percentage of a deal it says it helped close. The complaint usually claims breach of contract, and when the written agreement is thin or missing, it adds claims for quantum meruit and unjust enrichment, asking for the reasonable value of the work.
The Deadline Comes First.
Your business has a short window to answer, and CPLR 321(a) requires a corporation to appear through an attorney. A missed deadline can turn a disputed bill into a default judgment for everything claimed. See what to do when your business is sued.
What These Cases Usually Turn On.
What the agreement actually promised.
Most fee disputes come down to the engagement letter, statement of work, or proposal. What was the scope, what were the deliverables, when were fees earned, and what did it take to end the relationship? A retainer that renews monthly, a termination clause that requires written notice, or a milestone that was never reached can each decide the case. See the elements of a breach of contract claim.
Whether the work was done, and done right.
Payment usually follows performance. Deliverables that never arrived, missed deadlines, and work that had to be redone are defenses, and they may also support a counterclaim. Contemporaneous emails complaining about the work are often the most important evidence.
Finder's fees and success fees must be in writing.
General Obligations Law 5-701(a)(10) requires a written agreement, signed by the party to be charged, for a contract to pay compensation for services in negotiating a loan, a business opportunity, or the purchase or sale of a business or an interest in one. The statute defines negotiating to include procuring an introduction, and it reaches implied contracts for reasonable compensation too. It does not apply to attorneys, auctioneers, or licensed real estate brokers and salespeople. A finder suing on a handshake may have no claim at all.
How old the claim is.
Most contract claims for services must be brought within six years under CPLR 213(2). See the contract statute of limitations in New York.
Fees on top of fees.
Many agency and consulting agreements say the losing side pays the other's attorneys' fees, and some add late charges or interest. Without such a clause, each side usually pays its own lawyer. See attorneys' fees in New York contract cases.
What to Gather Now.
The summons and complaint, the engagement letter or statement of work, every proposal and change in scope, the invoices, your payment records, the deliverables you actually received, and the emails about deadlines, quality, and ending the relationship. Those documents usually show whether the fee was earned.
Frequently Asked Questions
Does a finder's fee agreement have to be in writing in New York?
Generally yes. General Obligations Law 5-701(a)(10) requires a signed writing for a contract to pay compensation for negotiating a loan, a business opportunity, or the purchase or sale of a business, including procuring an introduction. Attorneys, auctioneers, and licensed real estate brokers are excluded.
Can a consultant recover without a written contract?
Consultants often sue for the reasonable value of their work under quantum meruit when there is no written agreement. Whether that claim succeeds depends on the facts, and for finder's and success fees the writing requirement in General Obligations Law 5-701(a)(10) reaches implied contracts as well.
We cancelled the contract. Do we still owe the retainer?
It depends on the termination clause, whether notice was given the way the agreement requires, and when fees were earned under its terms.
How long does a consultant have to sue?
Most contract claims for services must be brought within six years under CPLR 213(2).
Tell Me About the Case.
I handle business lawsuits where $25,000 or more is at stake, in New York Supreme Court. Send me a short description and the date you were served, and I will tell you where things stand.
Phone: 212-233-0666 | Email: fabramson@abramsonlegal.com
Why the Courtroom Matters.
I have practiced in New York since 1997, and my office is in New York Supreme Court every week, in all five boroughs and in Nassau, Suffolk, and Westchester. I know how the parts run and what the judges expect, and that shapes every paper and every settlement conversation from the first day.
When you contact me, I run a conflict check first. If I can take the case, I will tell you plainly where things stand, what the deadlines are, and what it will take.
Related: Your Business Was Sued in New York · Sued by a Supplier for Unpaid Invoices · Flat-Fee Contract Review · Default Judgment Against Your Business · Common Defenses to a Breach of Contract Claim · Civil Litigation
Attorney Advertising. Prior results do not guarantee a similar outcome. This page is general information, not legal advice about your situation. The Law Office of Frederic R. Abramson, 160 Broadway, Suite 500, New York, NY 10038. 212-233-0666.