Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 15

Felix DeWeldon is a well-known sculptor and art collector. He owned three paintings valued at $26,000 that he displayed in his home in Newport, Rhode Island. In 1991, he declared bankruptcy and DeWeldon, Ltd., purchased all of DeWeldon's personal property from the bankruptcy trustee. Nancy Wardell, the sole shareholder of DeWeldon, Ltd., sold her stock to Byron Preservation Trust, which then sold Felix an option to repurchase the paintings. At all times, the paintings were on display in DeWeldon's home. In 1994, DeWeldon's son Byron told Robert McKean that his father was interested in selling the paintings. After viewing them, McKean then purchased the paintings for $50,000. DeWeldon, Ltd., brought suit to have the paintings returned, claiming McKean did not have title because Byron did not have the authority to sell the paintings. Will McKean get the paintings [DeWeldon, Ltd. v McKean, 125 F3d 24 (1st Cir)]