The plaintiff sought damages against one defendant for breach of contract arising from a failed investment transaction and against a lawyer who held the funds in trust for breach of contract, negligence, and breach of fiduciary duty.
The funds had been advanced pursuant to a memorandum of agreement for a proposed financial transaction, with the lawyer initially holding the funds in escrow.
The court found that the parties orally amended the agreement to allow an early release of part of the funds before trading commenced.
Because the lawyer released the funds in accordance with the amended agreement and acted solely for the borrower, no contractual, fiduciary, or negligence liability arose.
Judgment was granted against the borrower for repayment of US$150,000, while the claims against the lawyer were dismissed.
