Lee v. Hasson

Married couple Lanna Lee (plaintiff) and Lou Pai met Theodore Hasson (defendant) and his wife in 1993. The couples became close, vacationing and spending holidays together. Hasson sold Lee and Pai several multimillion-dollar life-insurance policies. Anticipating divorce after learning that Pai was having an affair, Lee gave Hasson confidential financial information and sought his advice in August 1999. In September, Lee allegedly hired Hasson to help her negotiate her divorce. Although the parties allegedly reached an oral agreement on compensation in January 2000, Lee later purportedly changed the terms. Under the revised purported oral agreement, Lee agreed to pay Hasson 10 percent of the marital estate she received in the divorce. Hasson, who was not a lawyer or a tax professional, never told Lee that he lacked the necessary skills to advise her or that Lee could hire someone competent for less. Hasson dissuaded Lee from hiring an attorney because Hasson claimed that the fees were unreasonable. Lee received over $110 million in the divorce. After Lee refused to pay Hasson 10 percent, Hasson sued her. Both Hasson and Lee testified that Lee trusted and relied on Hasson. The jury found that Hasson and Lee had a relationship of trust and confidence but that Hasson did not breach his fiduciary duty. The court granted Hasson’s motion to disregard the jury’s finding that Lee and Hasson had a relationship of trust and confidence and entered judgment for Hasson. Lee appealed.