Northeast General Corporation (B)

Wellington delivered a check to Northeast for its finder services but stopped payment before the check could be negotiated. Northeast then sued Wellington to recover its finder’s fee. After a trial, the jury found in favor of Northeast and awarded it the agreed-on finder’s fee. The trial court judge set aside the jury’s verdict. The judge’s decision, which rested on arguments of public policy, imposed a fiduciary-like duty on finders to disclose adverse information to their clients. The appellate division upheld the trial court judge’s action. Northeast appealed to the New York Court of Appeals, which reversed and order Wellington to pay the finder’s fee to Northeast General. Case4 includes excerpts from the majority opinion written by Judge Bellacosa.