GMH Associates, Inc. v. Prudential Realty Group
Pennsylvania Superior Court
752 A.2d 889 (2000)
Prudential Realty Group (Prudential) (defendant) and GMH Associates, Inc. (GMH) (plaintiff) agreed on a letter of intent (LOI) for the sale and purchase of Prudential's commercial property, subject to settling some outstanding issues. The LOI expressly permitted either party to terminate contract negotiations at any time and for any reason, and stipulated that any contract would need the approval of Prudential's directors. In return, Prudential promised that, for an unspecified period, it would not sell the property to anyone else. Contract negotiations lasted longer than expected. After the date originally set for closing passed, Prudential secretly offered the property to a Singapore firm. A few weeks later, a Prudential employee contacted GMH and suggested a way that GMH and Prudential might come to terms. GMH sent Prudential a new draft LOI, which purportedly accepted Prudential's supposed offer by incorporating the Prudential employee's suggestion. Otherwise, the draft revision simply reiterated the original LOI's provisions. Instead of approving the draft revision, Prudential sold the property to the Singapore firm. GMH sued Prudential for breach of contract, fraud, and bad faith, and asserted the doctrine of promissory estoppel. The trial court awarded compensatory and punitive damages to GMH. Prudential appealed to the Pennsylvania Superior Court.
Rule of Law
Holding and Reasoning (Cavanaugh, J.)
Dissent (Eakin, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.