Saks

The dispute underlying this appeal arose out of a series of real estate transactions in which developer Craig Caldwell, one of the defendants below, persuaded respondent Lawrence. Saks, M.D., to invest. Dr. Saks’s financial involvement with Caldwell began in May 1990 and ended a few months later in August 1990. During that time, Dr. Saks became embroiled in approximately half a dozen land deals and invested over $2 million, over $1 million of which was ultimately lost.

Reverend Sam Steel, Jr., former pastor and president of appellant Charity Mission Baptist Church (the Church), had been involved with Caldwell since 1988 or 1989, lending his name to more than one of Caldwell’s development schemes. Reverend Steel, who was also a defendant below, died during trial. Caldwell’s appeal was dismissed. The primary issue on appeal concerns whether the Church, the sole remaining appellant, should be held liable for Reverend Steel’s actions in support of Caldwell’s machinations. Specifically, should the Church be required to pay two promissory notes, one for $575,000 and one for $235,000, signed by Reverend Steel and made payable to Dr. Saks after Dr. Saks advanced $810,000 to…