The Appellate Division of the Supreme Court of the State of New York has affirmed an order awarding attorney fees to Brandon Adegunle in a breach of contract case against 11H, LLC. This decision, made on July 22, 2026, is significant for both parties involved and highlights the consequences of not accepting a settlement offer before trial.
The case, docket number 2023-01579, stems from a rental agreement dispute between 11H, LLC and Adegunle. The court's ruling emphasizes the importance of adhering to procedural rules in civil litigation, particularly when it comes to settlement offers and attorney fees.
In this case, 11H, LLC, the plaintiff, filed a lawsuit against Adegunle, the defendant, in July 2019. The lawsuit aimed to recover damages for breach of contract related to a rental agreement for real property located in Oyster Bay, New York. The dispute escalated to a nonjury trial that began on April 1, 2022, and concluded on April 11, 2022.
Prior to the trial, Adegunle served a written offer on February 14, 2022, to settle the case for a specified amount. However, 11H, LLC did not accept this offer, and the trial proceeded. After the trial, the court awarded 11H, LLC damages totaling $3,910.60, which was less than the amount offered by Adegunle.
Following the trial, Adegunle sought an award for attorney fees and costs under CPLR 3220, which allows for such awards when a party does not accept a settlement offer and fails to obtain a more favorable judgment. The Supreme Court of Nassau County granted Adegunle's motion for attorney fees, awarding him $11,473. 11H, LLC subsequently appealed this decision.
The court ruled that CPLR 3220 applies even if other causes of action are present in the case. It stated, "the record indicates that the defendant timely served the offer to liquidate damages... not later than 10 days before trial." The court also emphasized that the defendant did not concede liability before the trial, which further supported the validity of the fee award.
The ruling clarified that the term "expenses" under CPLR 3220 includes attorney fees, and the determination of what constitutes a reasonable fee falls within the discretion of the Supreme Court. The Appellate Division found that Adegunle's request for $11,473 in attorney fees was reasonable and backed by appropriate documentation.
As a result of this ruling, the court upheld the decision of the lower court, affirming the award of attorney fees to Adegunle. This case serves as a reminder of the potential financial implications for plaintiffs who choose to reject settlement offers in contract disputes.
The impact of this ruling extends beyond the parties involved. It reinforces the importance of considering settlement offers seriously and highlights the potential costs of litigation. Future plaintiffs may think twice before rejecting offers that could lead to higher expenses if they do not achieve a more favorable outcome at trial.
Additionally, this ruling may influence how attorneys advise their clients regarding settlement negotiations and trial strategies. The decision underscores the necessity of understanding the implications of CPLR 3220 and the risks associated with proceeding to trial without accepting reasonable settlement offers.
Looking ahead, it is unclear whether 11H, LLC will seek further appeal options following this ruling. The court's decision is final unless a higher court chooses to review the case. There are no related cases pending that were mentioned in the court's opinion.