In re Haley & Steele, Inc.

van Gestel, Allan, J.

In connection with the Fifth Report of the Special Master, Paper #43, and certain objections thereto, there has arisen a need for this Court to rule upon the interplay, if any, between the common law and two parts of the Massachusetts Uniform Commercial Code: G.L.c. 106, sec. 2-326; and G.L.c. 106, sec. 9-102(a)(20). Thus, this memorandum.

BACKGROUND

The setting in which the issue arises involves the sorting out of rights between and among individuals ensnared in the fraud flowing from the failure of Haley & Steele, Inc. (“Haley & Steele”), a Newbuiy Street art dealership.…