Précis
The Kohlers consigned a painting, The Plains of Meudon, which was purportedly the work of Theodore Rousseau, to Leslie Hindman, Inc. (“Hindman”), an auction house, for sale. The high bidder for the work had made a verbal agreement with Hindman that allowed him to cancel the sale if a Rousseau expert failed to authenticate the work. Consequently, when the expert determined that the painting was not authentic, the buyer rescinded the sale. The Kohlers sued Hindman for
breach of contract
Violation of a contractual obligation by failing to perform one's own promise, by repudiating it, or by interfering with another party's performance (Black’s Law Dictionary (8th ed. 2004)).
breach of contract, breach of
fiduciary duty
1) Any action, performance, task, or observance owed by a person in an official or fiduciary capacity; 2) A duty of utmost good faith, trust, confidence, and candor owed by a fiduciary (such as a lawyer or corporate officer) to the beneficiary (such as a lawyer's client or a shareholder); a duty to act with the highest degree of honesty and loyalty toward another person and in the best interests of the other person (such as the duty that one partner owes to another) (Black’s Law Dictionary (8th ed. 2004)).
fiduciary duty, and constructive
fraud
The intentional use of deceit, a trick or some dishonest means to deprive another of his money, property or legal right, either as a cause of action or as a fatal element in the action itself.
fraud
