Murray v. Just In Case Bus. Lighthouse, LLC

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Just in Case Business Lighthouse (JIC) , owned and operated by Joseph Mahoney, entered into an agreement with Pearl Development Company, whereby Pearl agreed to pay JIC a specified commission if it found a buyer for Pearl. Without JIC's knowledge, Pearl's agents, including its president, Patrick Murray, signed a letter of intent to sell Pearl with Epic Energy Resources, Inc. Before the sale was completed, Murray contacted Mahoney and convinced him to sign a termination agreement, ending their previous business arrangement. Five months later, Epic bought Pearl. Upon learning of the sale, JIC sued Pearl's officers and owners (including Murray) alleging they fraudulently misrepresented their intentions and failed to disclose that Epic was planning to purchase Pearl. The misrepresentation was used to induce Mahoney to sign the termination agreement and deprive him of his commission. In its preparation for trial, JIC hired businessman Preston Sumner as an advisor, and granted him a ten-percent interest in the case contingent on the outcome. Sumner did a variety of work related to the suit. JIC disclosed Sumner as a witness and indicated that it intended to use Sumner as an expert in the case. Murray moved to preclude Sumner from testifying, arguing that RPC 3.4(b) prohibiting compensating witnesses on a contingency fee basis. The trial court granted the motion in part and denied in part, finding that RPC 3.4(b) only prohibited Sumner from testifying as a non-expert witness. The court allowed him to testify as a law witness. Sumner testified; the jury returned its verdict in favor of JIC. Murray appealed, renewing arguments he made at the trial court challenging Sumner's testimony. The Supreme Court reversed the court of appeals' judgment to the extent that it remanded the case back to the trial court to determine whether Sumner's testimony should have been excluded. The Court affirmed the trial court in all other respects. View "Murray v. Just In Case Bus. Lighthouse, LLC" on Justia Law