The Tennessee Supreme Court has affirmed the Tennessee Court of Appeals' award to the estate of George Lambert $556,567.24 against longtime Dayton, Tn., attorney Arnold Fitzgerald for "unjust enrichment." The case involved a failed investment in "$150 million in hundred dollar bills of U.S. currency that went from South Africa to London."
Hamilton County Circuit Court Judge Jeff Hollingsworth, sitting by interchange, earlier awarded Mr. Lambert $33,840.28 in principal, pre-judgment interest, as well as attorney's fees. However, he denied the unjust enrichment.
The appeals court sent the case back for enforcement of the judgment.
Mr. Lambert had testified that he gave attorney Fitzgerald almost $700,000 to invest with a California man, Donald Brindley. The attorney pledged that Mr. Lambert would be getting $25 million of the treasure.
Mr. Lambert sued in 2013 for fraud, intentional misrepresentation, violation of the Tennessee Securities Act of 1980,and unjust enrichment.
The 40-page opinion says, "We find and hold that Lambert failed to prove an essential element of his claims for fraud, intentional misrepresentation, and violation of the Tennessee Securities Act of 1980, and we affirm the Trial Court‘s judgment, in part, as to those claims. We further find and hold that Lambert did prove his claim against Fritzgerald for unjust enrichment in the amount of $556,567.24, and we reverse the Trial Court‘s judgment with regard to this claim and remand this case to the Trial Court for entry of an additional award to Lambert from Fitzgerald of $556,567.24 for unjust enrichment."
Attorney Fitzgerald and Mr. Lambert knew each other for more than 40 years, and attorney Fitzgerald had done legal work for him in the past. The two "considered themselves to be friends," it was stated.
At some point during 2011, Mr. Lambert began giving attorney Fitzgerald money to invest with Donald Brindley.
The opinion says, "Purportedly, the Investment involved containers of $150 million dollars in United States currency in cash that had been transported from South Africa to London, England where it was to be cleaned of some sort of ink or dye before it could be distributed to Brindley and ultimately to Brindley‘s investors. Brindley, who resided in California, was to obtain certain paperwork including a diplomatic license, powers of attorney, and an anti-terrorism certificate before the money could be moved from customs to a bank, cleaned, and ultimately distributed. Lambert was promised a return of $25 million for his investment of several hundred thousand dollars. As of the time of trial in August of 2014, neither Lambert nor Fitzgerald had received any return from the Investment."
Attorney Fitzgerald testified that he invested $517,000 of his own money with Brindley. However, the opinion says no proof of that was presented.
He said he met Brindley twice in Knoxville.
Attorney Fitzgerald said his nephew, Dayton attorney Andrew Tucker, delivered money for him to Brindley. He said he would send attorney Tucker to London or to Houston to hand over the cash. He said attorney Tucker was also an investor, as was attorney Howard Upchurch. He said he paid Justin Angel, an attorney in the Upchurch firm, to fly to Chicago to take money to Brindley.
Attorney Fitzgerald admitted that he never asked for a contract or guarantee and got no return on the investment.
The attorney said he still believes the $150 million in cash is in London, though he did sue Brindley.
The law license of attorney Fitzgerald was suspended last September on a finding that he had misappropriated funds.
Chattanooga attorney Hoyt Samples filed the suit.