Question: Rodin Properties-Shore Mall loaned Shore Mall Associates, L.P. (SMA) $49 million to refinance the Shore Mall shopping center. A condition of the loan was that SMA get an appraisal that showed the value of the mall was at least $60 million. SMA hired Cushman & Wakefield (C&W) to appraise the property with the agreement that the appraisal was to help SMA get financing and it would be shown to lenders.
C&W appraised the mall at $65.5 million, an inflated value. The appraisal understated the mall's competition and overstated its cash flow. Rodin sued C&W for breach of its professional duty. Was C&W guilty of such a breach? [Rodin Properties-Shore Mall v. Ullman, 694 N.Y.S.2d 374 (A.D.)]