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Institutional Labor Advisors LLC v. Allied Resources Inc.

United States District Court for the Western District of Kentucky
2014 WL 4211196 (2014)


Allied Resources Inc. (defendant) hired Institutional Labor Advisors LLC (ILA) (plaintiff) to represent Allied in connection with an acquisition of coal reserves. Allied and ILA orally agreed that ILA would only be paid upon the successful acquisition of the reserves. When Allied acquired the reserves, Allied and ILA signed a written compensation agreement that stated that Allied would pay ILA 5 percent of the value of certain income from the reserves. ILA and Allied’s independent counsel extensively negotiated the agreement, including the method of calculating the 5 percent, for over seven months. ILA sued Allied, claiming that Allied breached the agreement by failing to pay the amounts due. Allied claimed that the agreement was invalid and unenforceable. Both parties moved for summary judgment.

Rule of Law


Holding and Reasoning (McKinley, C.J.)

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