Goldman v. Kane

Lawrence E. Hill asked his attorney Barry Kane (defendant) to help Hill purchase a boat for $31,500, for which Hill had already paid a deposit of $3,150. As part of this transaction, Kane would advise Hill on negotiations for the transfer of the boat, and Kane would assist Hill to register the boat and obtain financing for the purchase, which would need to occur by May 17, 1971. In early May, Kane informed Hill that he could not obtain financing for the boat, and Hill instructed Kane to sell one of Hill’s properties to pay for the boat. By late May, having not been able to sell the property, and with Hill standing to lose the deposit payment, Kane offered a loan to Hill. In exchange for the loan, Hill would have to convey title to his property to Kane’s corporation, including all assets within the property, as well as title to Hill’s current boat. Hill would also have to give title of the new boat to Kane’s corporation until the loan was paid off. Kane advised Hill of the implication of the agreement and advised Hill against entering into the agreement. Despite this, Hill entered into the agreement with Kane. Shortly thereafter, Kane’s corporation sold Hill’s property for $86,000. A few months later, after Hill defaulted on the boat loan, Kane took possession of the new boat without giving notice to Hill. Hill sued Kane for breaking his fiduciary duties to Hill, and after Hill died, Maurice Goldman (plaintiff), executor of the Hill estate, was substituted in the suit. The probate court ruled in favor of Goldman, ordering Kane to pay $50,806 plus interest to Goldman. Kane appealed.