Loan Modification Group, Inc. v. Reed, No. 11-1947 (1st Cir. 2012)Annotate this Case
Appellant Loan Modification Group, Inc. (LMG) appealed from a jury verdict awarding $414,000 in damages against LMG for breach of partnership duties and responsibilities owed to Appellee, Lisa Reed. The First Circuit Court of Appeals affirmed, holding (1) the jury was entitled to find that although Reed and LMG's partnership was formed in anticipation of and carried out in accordance with the Home Affordable Modification Program (HAMP), it could be fully performed within one year and need not last for the entire four-year duration of HAMP, and thus, the jury could have reasonably rejected application of the Statute of Frauds; (2) the evidence supported the jury's finding that a partnership existed, whether based on an express oral partnership agreement or on an implied partnership agreement; (3) having found that the partnership was never terminated and that LMG breached its fiduciary duties, the jury's damages award was proper; and (4) there was adequate evidentiary support to sustain the jury's damages award.