PARAGON TAX GROUP, LLC v. BROADVIEW NETWORKS HOLDINGS, INC.; INFOHIGHWAYS COMMUNICATION CORP; ATX COMMUNICATIONS, INC.; CORECOMM ATX, INC., Appellants, 503 Fed. Appx. 161

Summary

The parties entered a contract that allowed for a contingency fee of 30% of the gross receipts of tax benefits obtained by plaintiff on behalf of defendant. Plaintiff contended that it was entitled to 30% of the amount of a million dollar assessment that was reversed due to its efforts. Defendant claimed that plaintiff was only entitled to a share of tax monies actually recovered. Defendant argued that the contract should have been interpreted so that plaintiff would not receive a contingency fee for its work on the gross receipts tax appeal because it reduced an assessment, rather than returning money directly to defendant. That interpretation, however, failed to give effect to all of the provisions of the contract. The contract provided that plaintiff was to receive a fee based on recovered amounts or reductions of assessments. When read in the context of the contract, it was clear that the 30% fee applied to all contractual services. The fee for reducing defendant's gross receipts ...