BA 202 Case Study 34.5.docx

BA 202 Case Study 34.5.docx - Snow 1 Caroline Snow BA 201...

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Snow 1 Caroline Snow 03/29/16 BA 201 Dr. Speronis Critical Legal Thinking Cases: 34.5: Fiduciary Duty FACTS: Edgar and Selwyn Husted formed law partnership called Husted and Husted. Herman McCloud, who was an executor of his mother’s estate, hired them as attorneys. When taxes were due on the estate, Edgar told McCloud to write up a check for $18,000 made payable to the Husted and Husted Trust Account and that he would pay the IRS from that account. The problem was, there was no Husted and Husted Trust Account. Instead, Edgar took the check and deposited it into his personal account and used the funds for his own personal use. When McCloud discovered Edgar’s misconduct, he sued the law firm for conversion of estate funds. ISSUE: The issue brought forth in this case is whether or not the partnership is liable for Edgar’s actions based on the partnership’s fiduciary duty of loyalty. RULE OF LAW:
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Snow 2 There are several rules of law involved in this case, the first being fiduciary duty. A fiduciary duty is a legal duty a party has to act solely in another party's interests. Parties owing this duty are called fiduciaries
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