ÿWPCM 5Φ7}xu(¬‘sè½uW¤× ´¬|©‹äêÛûhú”0R}½*Õm§£Åâ3¯­Õ{,´ƒû dÚÐò€&SÏ8„„°Å˜úû\ p‹VºEL8æUÀ+t\†N¤ …Ô©*íœ^RÆç ‘ÜƒLä•È:~’Ít®e|üb½e9>öÍ ‰õžÒA·„èånÞ~Wßÿçk0CÍ^GšÑó”§QºNMã‹‹Ì¿ŠÁ§¨&† ¾ßª;Èr[?yy…™êÂÓ2Éø¢þïßmUÞ[H—<ž/¬œÌú…,×ðGüKIÌD#nÝyë}|{#ýÒ…ÀkÓ|UÆrKÎx|(09³_G)ÅUK&‰/$§Ì2ƒÔ½àÛWt\£iRØ}­M=Tþ~´í<ôAud÷ÉÞòaIˆßûcaFŠœvQEh¹ Ýñ£;a{È UÁw(yZ¿;ùÆÚ :V??qÓLÑ&ÊÄGùKXà$oŽ†ngµŠÌ`õ:h‡XÙ«=·¦“ lÎ+Jª¬¡û— sà$÷$¹¯|´€å3¸‡rè¿òÅ5bÉ$ Ó¡&b°žfù^»öÁ®]WÄÌF(zmÙð-Z† 8P<›9ý\ Ú70æî2ïg1ò˜–Î)#!>UN_ %­ 0(³UFÛE!Æ# 0eéw@N4Ž¢± m³ÆÊ 0eõ 0lý 0Di H­ U6õ J+ uFŠŠŠŠŠ"ÐÐÐÐÐÐÐÐÐÐÐ 0 >ò B0˜HP LaserJet 5MP,ð,,,,,ð0xÈhH  Z6Times New Roman RegularX($¡¡´4šÛ 9Z+‹.Courier New RegularI., II.,Level 1Level 2Level 3Level 4Level 54#(v2Quick I.ÚƒÚÚ  Ú.à0 àÛ€Û :£; <D=£>?™@{A{B{CU«Mq)3|xCÿU‹ÿÀÀÀ1, 2, 3,Level 1Level 2Level 3Level 4Level 54#*n2Quick 1.ÚƒÚÚ  Ú.à0 àÛ€Û ((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó >›Ó  ÓÝ ƒæ\ÿÝà  àòòÚ  Ú2Ú  ÚóóÝ  ÝÔ‡XPsXXXÔNotably,€this€is€Leavyððs€only€defense€to€the€trial€courtððsÐ ° Ðfinding€that€he€misused€those€proceeds€in€ways€that€helped€himselfÏand€harmed€the€Bank.Ô#†XPsXXXPsP#Ô´4šÛ 9Z+‹Courier New @›Ó  ÓÝ ƒæ\ÿÝà  àòòÚ  Ú1Ú  ÚóóÝ  ÝLeavyððs€brief€was€due€on€July€24,€2000.€€On€that€date,€heÐ ° Ðfiled€a€motion€to€extend€the€time€to€file€his€brief,€citing€ð ðaÏnumber€of€errors€in€the€preparation€and€printing€of€the€RecordÏExtract,€for€which€[counsel]€is€partly€to€blame€.€.€.€.ðð€€AllegingÏprofessional€commitments€and€absence€from€the€office,€he€asked€forÏan€extension€until€August€21.€€The€Bank€opposed€the€motion,€andÏsought€dismissal€of€the€appeal.€€It€argued€that€there€was€no€goodÐ ´    Ðcause€shown€for€the€extension,€and€allegedòò€inter€aliaóó€severalÐ ° Ðviolations€of€the€appellate€rules,€including€that€appellantððsÏcounsel€had€failed€to€serve€the€notice€of€appeal,€the€informationÏreport,€and€a€designation€of€the€parts€of€the€record€that€heÏintended€to€include€in€the€record€extract€as€required€by€Md.€RuleÏ8„501.€€In€response,€appellantððs€counsel€ð ðconcededðð€that€he€did€notÏcomply€with€Rule€8„501,€ð ðbut€note[d]€that€it€was€merely€anÏoversight.ðð€€€€€€€€ Ñ  Ñ <ØØÑ#€â€Xÿÿd#ÑÑ  Ñ Ñ  ÑÑ  Ñ>$"Small Circle dÝ ƒ!ÝÝ  Ý›ñ:ñÓ  Óñ:ññ?ñÒh°Òñ?ñÑ  Ññ8ñà @ àò òSALLY€D.€Ô_ÔADKINSÐ ° ЀAssociate€JudgeÌCourt€of€Special€Appeals€of€MarylandÌP.O.€Box€1029ÌSalisbury,€Maryland€21803„1029Ì410„334„6367ÌÌÌÌó óDecember€11,€2000ò òÐ ´   ÐÌó óÌÌÓ  ÓHon.€Joseph€F.€Murphy,€Jr.,€Chief€Judgeà p àHon.€James€R.€EylerÐ j  ÐHon.€Charles€E.€Moylan,€Jr.à À àà  àà p àHon.€Andrew€L.€SonnerÐ ð@  ÐHon.€Arrie€W.€Davisà  àà h àà À àà  àà p àHon.€James€A.€Kenney,€IIIÐ Æ  ÐHon.€Ellen€L.€Hollanderà h àà À àà  àà p àHon.€Deborah€S.€EylerÐ œì  ÐHon.€James€P.€Salmonà h àà À àà  àà p àHon.€Peter€B.€KrauserÐ r Ðà  àà ` àà ¸ àà  àà h àà À àà  àà p àÌà  àRe:à0 ` àNo.€0052,€September€Term,€2000òòÐn` (#` (# Ðà0  àà0` (#(#àHarry€L.€Leavy€v.€American€Federal€Savings€BankóóÐôD` (#` (# Ðà  àà ` àArgued:€November€9,€2000ÌÌDear€Judges:ÌÌà  àAttached€please€find€my€proposed€opinion€for€reporting€in€theÏabove„captioned€appeal.€€Kindly€let€me€have€the€benefit€of€anyÏsuggestions€which€you€may€have€in€time€for€their€considerationÏbefore€the€Conference.ÌÌà  àThank€you.ÌÌà  àà ` àà ¸ àà  àà h àà À àà  àVery€truly€yours,ÌÌà  àà ` àà ¸ àà  àà h àà À àà  àò òSALLYó óÐ ®!þ" ÐÌà  àà ` àà ¸ àà  àà h àà À àà  àSally€D.€Ô_ÔAdkinsÔ_ÔÌÌÔ_ÔSDA:dfrÌAttachmentÌÌcc:€Honorable€Raymond€G.€Thieme,€Jr.Ô_ÔÌñ/ñÌñ/ñP.S.€€Judges€Hollander€and€Thieme:€Other€than€the€addition€of€theÏ¢headnote£€I€have€not€made€any€changes€to€the€opinion€since€yourÏinitial€reading.€€ñ8ññ9ññ2ñÐ  ° Ðñ2ññ9ññ=ññ:ñÓ  Óñ:ññ=ñò òñ9ññ3ñ¢ñ3ññ9ññ:ññ3ñ¢ñ3ññ:ññ;ññ3ñ¢Headnote£ñ3ññ;ññ:ññ3ñ£ñ3ññ:ññ9ññ3ñ£ñ3ññ9ñó óñ;ññ3ñÐ ° ÐÌòòHarry€L.€¢Leavy£€v.€American€Federal€Savings€Bankóó,€No.€0052,€Sept.Ð jº ÐTerm,€2000ÌÌò òCORPORATIONS€ð"ð€BANKS€ð"ð€OFFICERS€AND€DIRECTORS€ð"ð€FIDUCIARY€DUTY€ð"ðÐ òB ÐMISUSE€OF€CORPORATE€OFFICE€AND€CORPORATE€ASSETS.Ìó óÌBank€president,€who€was€also€corporate€director€and€shareholder,Ïbreached€his€fiduciary€duty€of€loyalty€to€the€bank€by€misusing€hisÏoffice€and€the€bankððs€assets€to€obtain€a€secret€fee€for€brokeringÏa€private€loan€to€the€bankððs€largest€borrower.€€At€the€same€timeÏthe€president€was€negotiating€a€restructuring€of€the€borrowerððsÏdebt€to€the€bank,€which€federal€regulators€had€criticized€asÏexcessive€and€inadequately€secured,€the€president€also€agreed€toÏbroker€a€private€loan€secured€by€a€second€deed€of€trust€coveringÏproperty€on€which€the€bank€had€a€first€deed€of€trust,€and€to€takeÏa€10%€($650,000)€brokerage€fee€for€doing€so.€€President€breachedÏhis€duty€of€loyalty,€òòinter€alia,óó€by€failing€to€disclose€theÐ ì< Ðbrokerage€fees€to€bankððs€board€of€directors,€some€of€whom€heÏrecruited€to€be€part€of€the€private€lending€consortium.€€PresidentÏalso€breached€duty€of€loyalty€by€misusing€Bankððs€collateral,Ïincluding€releasing€some€of€it€in€order€to€obtain€payment€of€theÏundisclosed€brokerage€fee.€€€€€Ìñ3ññ;ññ<ñÐ  ° Ðñ<ññ=ñÓ  Óñ=ññ?ñÒì°Òñ?ñÑ€P¨ÑÑ  ÑÑ€*"ÑÑ€~ÑÓÓÐ ° Ðòòñ9ñÓ  Óñ9ñÌREPORTEDóó€Ð X ÐòòIN€THE€COURT€OF€SPECIAL€APPEALS€OFÐ ´  ÐMARYLANDóóÐ ` ° ÐNo.€0052ÌSeptember€Term,€2000Ìòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ d´  ÐHARRY€L.€LEAVYÌv.ÌAMERICAN€FEDERAL€SAVINGS€BANKÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ d ÐÓ  ÓÓÓñ@ñà À àñ@ñHollander,ÌÔ_ÔÔ_ÔÔ_ÔñAñà À àñAñ¢Thieme£,*ÌñBñà À àñBñ¢Adkins£,Ô_ÔÌÓ  ÓÌà @D àà @œ àà @ô àà @L àà @¤ àà @ü! àJJ.ÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ Ä ÐOpinion€by€Ô_ÔAdkinsÔ_Ô,€J.ÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ F –! ÐÓ  Ó*Thieme,€J.,€participated€in€the€hearingÏand€conference€of€this€case€while€anÏactive€member€of€this€Court;€heÏparticipated€in€the€adoption€of€thisÏopinion€as€a€retired,€specially€assignedÏmember€of€this€Court.ÌÌßA€() °°xdÿEhõ&ÀAßÐ ö&F") ÐÌÓ  ÓFiled:ñ>ñ€December€29,€2000ñ>ñÌÌÌÌÌÒ°hÒÓÓÓ  ÓñCñÌÐ µ-)2 ÐÑP¨Ñâ âÑ  Ñâ âÑ  ÑñCñà  àHarry€L.€Leavy€(ð ðLeavyðð),€appellant,€appeals€from€the€trialÏcourtððs€judgment€that€he€breached€his€fiduciary€duties€to€AmericanÏFederal€Savings€Bank€(the€ð ðBankðð),€appellee.€€While€Leavy€was€theÏpresident€and€chairman€of€the€Bankððs€board€of€directors,€heÏrecruited€some€of€the€Bankððs€board€members€and€others€to€make€aÏ$6.5€million€loan€to€a€troubled€borrower€of€the€Bank,€and€secretlyÏtook€a€$650,000€loan€brokerage€fee€for€doing€so.€€Later,€LeavyÏfraudulently€conveyed€$450,000€to€his€son,€Christopher€LeavyÏ(ð ðChristopherðð),€placing€those€funds€out€of€the€Bankððs€reach.€€¼à  àAfter€a€four€day€bench€trial€and€post„trial€briefing,€theÏtrial€court€issued€a€written€memorandum€and€opinion€enteringÏjudgment€against€Leavy€in€the€amount€of€$650,000,€plus€prejudgmentÏinterest,€and€judgment€against€Christopher€in€the€amount€ofÏ$450,000,€plus€prejudgment€interest.€€After€receiving€some€paymentsÏfrom€Christopher,€the€Bank€released€its€judgment€against€him.€€ThisÏappeal€is€solely€on€behalf€of€Leavy.€€Leavy€raises€the€followingÏissues,€which€we€have€rephrased:ÌÝ‚(vÿÝÝ  ÝÒ` °ÒÒ` °ÒÓÓÝ‚(vQÝÚƒÚIÚ  Ú.à0 ¸ àÝ  ÝWhether€there€was€substantial€evidence€toÐ !l" Ðsupport€the€trial€courtððs€finding€thatÏLeavy€breached€his€fiduciary€duties€toÏthe€Bank.݃(vQšÝۀیР¸ x¸ x ÐŒÝ  ÝÌÝ‚(vÿÝÝ  ÝÝ‚(vËÝÚƒÚIIÚ  Ú.à0 ¸ àÝ  ÝWhether€the€trial€court€properly€enteredÐ J%š ' Ðseparate€restitutionary€judgments€againstÏboth€Leavy€and€Christopher.à0ȸ x¸ xà݃(vËæÝÛ€ÛŒÐö&F")ÈxÈx ÐŒÝ  ÝÌÒ°` ÒÒ°` ÒÓÓFinding€no€error€and€ample€evidence€that€Leavy€breached€hisÏfiduciary€duties€to€the€Bank,€we€affirm€the€judgment€against€him.Ìò òÓÓÐ  ú+J'/ ÐÑ~Ñâ âØØÑ8€XXdÖXXdÖ8ÑÑ  Ñâ âÑ  ÑFACTS€AND€LEGAL€PROCEEDINGSó óÐ ° ÐÓZÓÓ  Óà  àSince€1983,€when€he€founded€the€Bankððs€predecessor„in„¼interest,€Leavy€served€as€the€Bankððs€president€and€chairman€of€itsÏboard€of€directors.€€By€1989,€the€Bank€had€made€10€separate€loansÏtotaling€$6.6€million€to€its€largest€borrower,€Eugene€N.€Hooper.€ÏFederal€regulators€conducting€an€examination€of€the€Bank€harshlyÏcriticized€the€large€concentration€of€troubled€credit€in€a€singleÏborrower.€€€€€€€€€Ìà  àIn€response,€Leavy€negotiated€with€Hooper€to€restructure€theÏdebt.€€By€the€end€of€February€1989,€Hooper€had€agreed€to€aÏrefinancing€plan€that€required€him€to€reduce€the€debt€by€$1.1Ïmillion€immediately,€and€by€an€additional€$4€million€within€oneÏyear.€€The€deal€included€additional€security.€€Hooper€agreed€toÏgive€the€Bank€a€first€deed€of€trust€on€Hooperððs€property€known€asÏthe€Cedar€Crest€Country€Club,€and€a€second€deed€of€trust€on€aÏshopping€center€owned€by€Hooper.€€The€plan€also€required€realÏestate€taxes€and€insurance€on€the€collateral€properties€to€beÏescrowed.€€We€shall€refer€to€the€debt€restructuring€and€refinancingÏplan€as€the€ð ðCedar€Crest€Loan.ðð€€Ìà  àWhile€he€was€negotiating€with€the€Bank€through€Leavy,€HooperÏalso€was€seeking€additional€credit.€€By€March€1989,€Hooper€had€aÏ$3.3€million€loan€commitment€from€another€lender.€€There€was€a€10%Ïfee€for€that€loan.€€But€Hooper€was€not€satisfied€with€the€amount€ofÏthat€loan,€and€continued€to€look€for€other€financing€sources.€€Ð @+&. Ðà  àIn€pursuit€of€additional€capital,€Hooper€approached€LeavyÏabout€brokering€a€loan€that€would€stand€behind€the€Bankððs€loan.€€AtÏthe€same€time€he€was€negotiating€with€Leavy€about€restructuring€andÏreducing€the€Bankððs€loans,€Hooper€solicited€Leavy€to€help€himÏobtain€other€financing.€€He€told€Leavy€that€he€would€pay€a€10%Ïbrokering€fee€for€the€loan,€to€be€secured€by€a€second€deed€of€trustÏon€the€Cedar€Crest€Country€Club€property,€behind€the€Bankððs€firstÏtrust.€€€€€€€€€€€€Ìà  àAlthough€he€had€never€before€brokered€a€loan€and€was€stillÏworking€on€behalf€of€the€Bank€to€lessen€its€exposure€on€the€HooperÏloans,€Leavy€agreed.€€He€recruited€20€private€lenders€to€loanÏHooper€$6.5€million,€secured€by€a€second€deed€of€trust€on€the€CedarÏCrest€property.€€We€shall€refer€to€this€loan€as€the€ð ðSecond€TrustÏLoan.ðð€€Ultimately,€Leavy€and€four€members€of€the€Bankððs€board€ofÏdirectors€participated€in€their€individual€capacities€as€part€ofÏthe€lending€consortium€for€the€Second€Trust€Loan.Ìà  àLeavy€did€not€disclose€that€he€would€earn€a€10%€brokerage€feeÏto€either€the€participating€directors€or€to€anyone€else€at€theÏBank.€€During€the€time€Leavy€was€simultaneously€negotiating€theÏCedar€Crest€Loan€on€behalf€of€the€Bank€and€the€Second€Trust€Loan€Ïon€behalf€of€himself€and€Hooper,€the€terms€of€the€Cedar€Crest€LoanÏchanged,€upon€Leavyððs€recommendations.€€By€June,€the€immediate€$1.1Ïmillion€pay€down,€the€$4€million€pay€down€after€one€year,€and€theÏescrow€account,€all€of€which€Hooper€had€agreed€to€in€February,€wereÐ $+t&. Ðno€longer€part€of€the€deal.€€Instead€of€the€total€amount€of€theÏloan€decreasing€to€$5.5€million€(with€another€$4€million€pay€downÏin€one€year),€the€loan€actually€increased€to€$7.1€million€(with€noÏspecific€pay€down€provisions).€€Ìà  àIn€addition,€Leavy€successfully€recommended€that€the€BankÏrelease€its€security€interest€in€a€particular€piece€of€FloridaÏproperty€that€had€served€as€collateral€for€one€of€the€Bank€loansÏthat€was€being€restructured€as€part€of€the€Cedar€Crest€Loan€(theÏð ðJupiter€Road€Propertyðð).€€On€Leavyððs€recommendation,€made€duringÏthe€time€he€was€simultaneously€working€on€the€Cedar€Crest€Loan€andÏthe€Second€Trust€Loan,€the€Jupiter€Road€Property€was€not€includedÏin€the€collateral€for€the€Cedar€Crest€Loan.€€Leavy€then€used€theÏJupiter€Road€Property€to€secure€Hooperððs€obligation€to€pay€LeavyÏthe€$650,000€brokerage€fee.€Ìà  àStill€unaware€of€Leavyððs€brokerage€fee€for€the€Second€TrustÏLoan,€the€Bankððs€board€approved€the€Cedar€Crest€Loan€on€June€21,Ï1989,€upon€Leavyððs€recommendation.€€At€the€Bankððs€meeting€on€thatÏloan,€Leavy€again€did€not€disclose€his€fee€arrangement€for€theÏSecond€Trust€Loan,€and€did€not€obtain€the€Bankððs€permission€toÏreceive€the€fee€for€brokering€the€Second€Trust€Loan€in€his€personalÏcapacity€rather€than€his€corporate€capacity.€€€€€€Ìà  àSettlement€on€both€the€Cedar€Crest€Loan€and€the€Second€TrustÏLoan€occurred€the€next€day,€on€June€22,€1989.€€Because€the€twoÏloans€did€not€raise€enough€cash€for€Hooper€to€pay€Leavy€theÐ $+t&. Ð$650,000€brokerage€fee,€Hooper€executed€a€$750,000€promissory€noteÏto€Leavy€on€the€same€day€(the€ð ðNoteðð).€€The€Note€was€due€in€oneÏyear,€and€was€secured€by€the€Jupiter€Road€Property.€Ìà  àShortly€after€the€Cedar€Crest€Loan€closed,€Hooper€receivedÏmore€than€$1€million€as€a€distribution€from€his€partnershipÏinterest€in€a€property€known€as€ð ðStringfellow€Road.ðð€€Leavy€knewÏthat€the€Bank€had€a€security€interest€in€the€Stringfellow€RoadÏproceeds,€because€the€property€was€collateral€for€the€Cedar€CrestÏLoan.€€Nevertheless,€he€allowed€Hooper€to€keep€$200,000€of€theÏfunds.€€Hooper€gave€$800,000€to€Leavy,€who€put€it€into€an€accountÏat€the€Bank,€over€which€he€was€the€sole€trustee.€Ìà  àLeavy€allowed€some€of€the€$800,000€proceeds€to€be€used€forÏpurposes€other€than€the€payment€of€principal€that€Hooper€owed€toÏthe€Bank.€€He€authorized€and€directed€that€some€of€the€StringfellowÏRoad€proceeds€be€used€to€make€Hooperððs€interest€payments€on€theÏCedar€Crest€Loan.€€In€addition,€he€released€$75,000€of€the€fundsÏdirectly€to€Hooper€on€May€24,€1990.€€On€June€22,€1990,€LeavyÏreleased€another€$75,000€to€Hooper€and€First€Federal€Savings€andÏLoan€of€the€Palm€Beaches€(ð ðFirst€Federalðð).€€First€Federal€thenÏloaned€Hooper€$650,000.€€Those€funds€were€immediately€used€to€payÏLeavy€his€$650,000€brokerage€fee.€€The€$650,000€check€from€theÏtitle€company€that€handled€the€First€Federal€loan€for€Hooper€wasÏissued€to€Leavy€on€June€25,€1990,€the€next€business€day€after€LeavyÏreleased€the€$75,000€to€First€Federal.€€According€to€Leavy,€heÐ $+t&. Ðinvested€the€$650,000€in€Hooperððs€Cedar€Crest€Country€Club.€€Ìà  àEventually€Hooper€defaulted€on€both€the€Cedar€Crest€Loan€andÏthe€Second€Trust€Loan.€€Leavy€did€not€pursue€foreclosure€of€theÏBankððs€first€deed€of€trust€on€the€Cedar€Crest€property.€€Instead,Ïhe€allowed€the€Second€Trust€Loan€group€to€foreclose€on€the€CedarÏCrest€Country€Club€Property.€€They€eventually€settled€with€theÏBank.€€Leavy€lost€all€his€investments€in€both€the€Second€Trust€LoanÏand€the€Cedar€Crest€Country€Club.€€Ìà  àOn€April€6,€1994,€at€an€emergency€meeting€of€the€Bankððs€boardÏof€directors,€Leavyððs€criminal€defense€lawyer€disclosed€that€LeavyÏhad€received€the€$650,000€fee€in€connection€with€the€Second€TrustÏLoan.€€At€the€boardððs€request,€Leavy€resigned€from€the€Bank.€€AfterÏLeavy€resigned,€the€Bank€asserted€a€claim€against€Leavy€for€theÏ$650,000.€€One€of€Leavyððs€assets€that€was€considered€in€discussionsÏregarding€that€claim€was€an€interest€in€a€limited€partnership€thatÏowned€property€on€Reisterstown€Road.€€In€early€1996,€LeavyððsÏinterest€in€that€property€was€sold.€€On€March€1,€1996,€LeavyÏconveyed€to€his€son€Christopher€$450,000€of€the€proceeds€from€thatÏsale.€€€Ìà  àOn€April€3,€1997,€the€Bank€filed€suit€against€Harry€Leavy€andÏChristopher€Leavy€in€Montgomery€County€Circuit€Court.€€BeforeÏtrial,€the€Bank€elected€to€proceed€against€Harry€Leavy€solely€onÏits€equitable€claims.€€The€Bank€sought€a€judgment€establishing€aÏconstructive€trust€and/or€ordering€Leavy€to€pay€restitution€for€theÐ $+t&. Ð$650,000€brokerage€fee,€plus€interest€from€June€25,€1990.€€InÏaddition,€the€Bank€proceeded€on€its€fraudulent€conveyance€claimsÏagainst€Christopher,€seeking€a€judgment€in€the€amount€of€$450,000Ïplus€prejudgment€interest€from€March€1,€1996.€€€Ìà  àAfter€trial,€the€court€issued€a€written€memorandum€opinion€andÏorder.€€The€court€found,€òòinter€alia,óó€that€Leavy€had€breached€hisÐ  \  Ðfiduciary€duties€to€the€Bank€by€obtaining€the€$650,000€fee€for€hisÏpersonal€benefit,€that€Leavyððs€transfer€of€the€$450,000€toÏChristopher€was€a€fraudulent€conveyance,€and€that€the€Bank€wasÏentitled€to€judgment€against€Leavy€in€the€amount€of€$650,000,€plusÏ$373,856.85€in€prejudgment€interest,€and€to€judgment€againstÏChristopher€in€the€amount€of€$450,000,€plus€$105,423.22€inÏprejudgment€interest.€€Leavy€then€filed€this€appeal.Ìò òÓ  ÓÓÓDISCUSSIONÐ xÈ ÐÌI.ÌMotion€To€Dismissó óÐ $t ÐÌÓ{=ÓÓo=Óà  àPreliminarily,€we€address€the€Bankððs€two€motions€to€dismissÏthis€appeal.€€When€Leavy€sought€extra€time€to€file€his€brief€inÏthis€Court,€the€Bank€opposed€that€motion€and€moved€to€dismiss€theÏappeal.׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€By€order€dated€August€17,€2000,€we€allowed€Leavy€extraÐ â#2% Ðtime€to€file€his€brief€ð"ð€until€August€21,€2000.€€We€also€denied€theÏBankððs€motion,€but€without€prejudice€to€its€right€to€seek€thatÏrelief€in€its€brief.€€Ìà  àLeavy€filed€his€brief€in€this€Court€a€week€late,€on€August€28,Ï2000,€without€requesting€further€extension€of€time,€and€apparentlyÏwithout€consulting€the€Bankððs€counsel€regarding€either€the€lateÏfiling€or€the€record€extract.€€The€Bank€filed€a€second€motion€toÏdismiss€the€appeal,€and€renews€both€motions€in€its€brief.€€InÏaddition€to€the€unauthorized€late€filing€of€the€brief,€the€BankÏcontends€that€Leavy€ð ðknowingly€neglected€to€make€any€effort€toÏcomply€with€Rule€8„501(d)€[requiring€cooperation€in€the€preparationÏof€the€record€extracts],€even€after€his€prior€failure€to€complyÏwith€that€Rule€had€been€brought€to€his€attentionðð€in€the€BankððsÏfirst€motion€to€dismiss.€€The€Bank€also€complains€that€LeavyððsÏrecord€extract€is€materially€incomplete,€and€necessitated€theÏfiling€of€an€appendix€to€the€Bankððs€brief.€€It€also€asserts€thatÏLeavy€compounded€his€pattern€of€failing€to€serve€the€Bank€withÏdocuments€by€failing€to€serve€a€copy€of€his€opposition€to€theÏBankððs€second€motion€to€dismiss,€despite€the€claim€in€theÐ È"$ Ðcertificate€of€service€that€he€mailed€it€on€September€13,€2000.€ÏThe€Bank€asks€that€this€appeal€be€denied€or€dismissed,€or€in€theÏalternative,€that€appellantððs€counsel€be€ordered€to€pay€the€costsÏincurred€by€the€Bank€in€printing€an€appendix€to€its€brief€and€inÏfiling€the€two€motions€to€dismiss.€€Ìà  à¢Leavy£€opposed€the€second€motion€to€dismiss,€arguing€that€heÏfiled€his€brief€by€mail€on€August€25òòthóó€because€he€did€not€receiveÐ ¸  Ðthe€Courtððs€order€granting€the€extension€until€August€21,€the€dateÏthe€brief€and€record€extract€were€due€under€the€extended€deadline.€ÏRelying€solely€on€ð ðlack€of€prejudiceðð€as€a€defense,€appellantððsÏcounsel€offered€no€reason€for€failing€to€consult€with€the€BankððsÏcounsel€regarding€the€late€filing€or€the€record€extract.€€Ìà  àWe€agree€with€the€Bank€that€these€actions€evidence€a€patternÏof€unacceptable€disregard€for€the€appellate€rules€of€this€Court.€ÏIn€particular,€we€find€the€late€filing€of€appellantððs€brief€andÏrecord€extract,€seven€days€after€the€extended€deadline€establishedÏby€special€permission€of€this€Court,€inexcusable.€€This€late€filingÏclearly€warrants€dismissal€of€the€appeal.€€Ìà  àDismissal€of€an€appeal,€however,€is€a€discretionary€matter.ÏòòSeeóó€Md.€Rule€8„502(d),€8„602.€€In€light€of€our€decision€in€thisÐ t$Ä& Ðcase,€and€the€evidence€that€these€failures€may€have€resulted€fromÏcounselððs€actions,€we€will€not€exercise€that€discretion€againstÏappellant.€€Given€the€avoidable€expenses€incurred€by€the€Bank€as€aÏresult€of€the€admitted€failures€of€appellantððs€counsel€to€complyÐ 0+€&. Ðwith€the€appellate€rules,€however,€we€will€grant€the€Bankððs€requestÏfor€costs.€€Counsel€for€appellant€will€reimburse€the€Bank€for€theÏcosts€of€preparing€and€printing€the€appendix€to€its€brief,€and€forÏthe€costs€of€preparing€the€Bankððs€second€motion€to€dismiss.€€TheÏBank€should€submit€an€appropriate€order€for€such€costs,€withÏaffidavits€and€such€other€evidence€as€is€necessary€to€establish€theÏreasonableness€of€such€expenses,€within€10€days€after€the€filing€ofÏthis€opinion.€Ìò òÓÓÓ  ÓII.Ð `  ÐMerits€Of€The€AppealÌó óÌÓ£LÓÓ‘LÓò òÓÓÓ  ÓA.Ð ®þ ÐStandard€Of€ReviewÌÌó óÓMÓÓ MÓà  àIn€an€action€tried€without€a€jury,€we€ð ðwill€review€the€case€onÐ Zª Ðboth€the€law€and€the€evidence.ðð€€Md.€Rule€8„131(c).€€In€doing€so,Ïwe€ð ðgive€due€regard€to€the€opportunity€of€the€trial€court€to€judgeÏthe€credibility€of€the€witnesses.ðð€€òòId.óó€€Our€review€is€limited€toÐ ^® Ðdeciding€whether€there€was€sufficient€evidence€to€support€the€trialÏcourtððs€conclusions.€€òòSee€Gwynn€v.€Oursleróó,€122€Md.€App.€493,€502,Ð Â  Ðòòcert.€denied,óó€351€Md.€662€(1998).€€ð ð[T]he€trial€judge€may€believeÐ z!Ê" Ðor€disbelieve,€credit€or€disregard,€any€evidence€introduced,€and€aÏreviewing€court€may€not€decide€on€appeal€how€much€weight€must€beÏgiven€as€a€minimum€to€each€item€of€evidence.ðð€€òòLoyola€Federal€Sav.Ð Š&Ú!( ÐBank€v.€Hillóó,€114€Md.€App.€289,€307€(1997).Ô‡XšÕXXXÔ€€Ô#†XPsXXXšÕÙP#ÔÐ B(’#* Ðò òÓÓÓ  ÓÌÌÐ ê+:'. ÐB.ÌBreach€Of€Fiduciary€Duty€Of€LoyaltyÌÌó óÓGQÓÓ5QÓà  àThe€trial€court€agreed€with€the€Bank€that€Leavy€had€breachedÐ \¬ Ðhis€fiduciary€duty€of€loyalty€in€three€respects:€€(1)€using€hisÏcorporate€office€and€the€Bankððs€assets€for€his€private€gain,€ratherÏthan€for€the€Bankððs€best€interest;€(2)€placing€his€interests€inÏconflict€with€the€Bankððs€interests;€and€(3)€usurping€the€BankððsÏcorporate€opportunity.€€On€appeal,€Leavy€argues€that€the€evidenceÏdid€not€support€these€findings.€€As€set€forth€below,€we€find€thatÏthere€was€substantial€evidence€to€support€the€trial€courtððs€findingÏthat€Leavy€breached€his€fiduciary€duty€of€loyalty€to€the€Bank€byÏmisusing€his€office€and€the€Bankððs€property,€and€by€failing€to€actÏin€the€Bankððs€best€interests.€€Because€that€finding€was€sufficientÏby€itself€to€support€the€judgment€against€Leavy,€we€do€not€reachÏthe€issues€raised€by€Leavy€regarding€the€trial€courtððs€alternativeÏgrounds€for€the€judgment.€€€Ìò òÓÓÓ  Ó1.Ð Ä ÐMisuse€Of€Corporate€Office€And€Corporate€Assetsó óÐ ¨ø  ÐÌÓyUÓÓgUÓà  àCorporate€officers€and€directors€are€fiduciaries€who€are€underÏa€duty€to€act€for€the€benefit€of€the€corporation.òò€€See€RestatementÐ #^$ Ðof€the€Law,€Restitution,óó€ðð€190€¢cmt£.€a€(1937).€€For€this€reason,Ð Æ$ & ÐMaryland€courts€have€long€recognized€that€a€corporate€officer€mayÏnot€use€the€corporate€office€or€assets€for€personal€gain.€€òòSee€óóÐ *(z#* ÐòòLevin€v.€Levin,óó€43€Md.€App.€380,€390€(1979).€€The€purpose€of€theÐ â)2%, Ðrule€is€to€prevent€fiduciaries€from€straying€from€theirÐ š+ê&. Ðobligations.€€òòSee,€e.g.,óó€òòRestatement,€supra,óó€ðð€197€¢cmt£.€c€(ruleÐ ° Ðð ðrests€upon€a€broad€principle€of€preventing€a€conflict€of€opposingÏinterests€in€the€minds€of€fiduciaries€.€.€.ðð).Ìà  àð ðWhere€a€fiduciary€in€violation€of€his€duty€to€the€beneficiaryÏreceives€.€.€.€a€bonus€or€commission€or€other€profit,€he€holds€whatÏhe€receives€upon€a€constructive€trust€for€the€beneficiary.ðð€€òòId.óó€atÐ  h  Ððð€197.€€ð ðIf€the€[fiduciary]€has€made€a€profit€through€the€violationÏof€a€duty€to€the€plaintiff€to€whom€he€is€in€a€fiduciary€relation,Ïhe€can€be€compelled€to€surrender€the€profit€to€the€plaintiff,Ïalthough€the€profit€was€not€made€at€the€expense€of€the€plaintiff.ððòò€Ð Ô$ ÐId.€at€ðð€óó160,€cmt.€d€(1932).€€Courts€have€awarded€restitutionaryÐ ŒÜ Ðjudgments€against€bank€presidents€who€receive€commissions€or€otherÏpersonal€profits€by€violating€their€duty€of€loyalty€to€the€bank.€Ð ð@ ÐòòSee,€e.g.,óó€òòKing€v.€Ballard,€óó643€S.W.2d€457,€463€(Tex.€App.€1982),òòÐ œì Тrevððd£€in€part€on€other€grounds,óó€652€S.W.2d€767€(Tex.€1983)Ð T¤ Ð(judgment€against€bank€president€who€received€fees€for€procuringÏloan);€òò€Fleishhacker€v.€Blum,óó€109€F.2d€543,€546€(9òòthóó€Cir.),òò€cert.Ð ¸  Ðdenied,óó€311€U.S.€665,€61€S.€Ct.€23€(1940)€(same);òò€Broadway€Fed.Ð p!À" ÐSav.€&€Loan€Assððn€v.€Howard,€óó285€P.2d€61,€69€(Cal.€App.€1955)Ð (#x$ Ð(judgment€against€bank€president€in€amount€of€secret€commissions);Ð à$0 & ÐòòBlackburnððs€¢Admððx£€v.€Union€Bank€&€Trust€Co.,óó€108€S.W.2d€806,€809Ð Œ&Ü!( Ð(Ky.€1937)€(judgment€against€bank€president€in€amount€of€feesÏcharged€for€mortgage€loan€transactions);€òòsee€generallyóó€47€A.L.R.3dÐ ð)@%, Ð373€(2000)€(liability€of€corporate€officer€or€director€forÐ ¨+ø&. Ðcommission€or€compensation€received€from€third€person€in€connectionÏwith€that€personððs€transaction€with€corporation).€€ð ðIn€theseÏsituations€the€[fiduciary]€is€compelled€to€surrender€the€benefit€onÏthe€ground€that€he€would€be€unjustly€enriched€if€he€were€permittedÏto€retain€it,€even€though€that€enrichment€is€not€at€the€expense€orÏwholly€at€the€expense€of€the€plaintiff.ðð€€òòRestatement,€supra,óó€at€ððÐ  \  Ð160€cmt.€d;òò€see€generally€óó47€A.L.R.3d€373,€òòsupraóó€(collectingÐ Ä  Ðcases).Ì€€€€à  àWe€applied€these€standards€in€òòLevinóó,€òòsupraóó,€where€weÐ (x  Ðrecognized€that€a€corporate€officerððs€use€of€corporate€propertyÏwithout€the€knowledge€or€approval€of€the€board€of€directorsÏconstitutes€a€breach€of€his€duty€of€loyalty.€€Levin,€the€presidentÏof€several€family„held€corporations,€secretly€borrowed€money€fromÏthe€corporations€in€order€to€purchase€real€property€in€his€ownÏname.€€We€held€that€this€unauthorized€use€of€corporate€property,Ïmade€possible€by€Levinððs€misuse€of€his€corporate€office,€violatedÏthe€fiduciary€duty€of€loyalty.€€òòSee€Levin,€óó43€Md.€App.òò€óóat€390„91.€Ð ”ä  ÐIn€doing€so,€we€summarized€the€fiduciary€standard€governing€theÏactions€of€a€corporate€officer:€€ð ðIn€dealing€with€corporate€assetsÏ[the€corporate€officer]€was€required€to€act€in€the€best€interestsÏof€the€corporation€and€he€was€prohibited€from€using€either€hisÏposition€or€the€corporationððs€funds€for€his€private€gain.ðð€€òòId.€óóatÐ ü'L#* Ð390.€€We€held€that€this€disloyal€corporate€officer€was€not€entitledÏto€retain€any€benefit€obtained€as€a€result€of€his€breach€of€duty€toÐ `+°&. Ðthe€corporations.€€òòSee€id.€óóà À àÐ ° Ðà  àIn€this€case,€the€trial€court€concluded€that€Leavy€misused€hisÏcorporate€office€and€the€Bankððs€assets€for€his€private€gain,€andÏthat€he€failed€to€act€in€the€best€interests€of€the€Bank.€€We€findÏample€evidence€in€the€record€for€this€factual€finding.€€The€trialÏcourt€cited€multiple€ways€in€which€Leavy€misused€his€office€and€theÏBankððs€assets.€€We€summarize€the€trial€courtððs€findings,€and€theÏsupporting€evidence.€€Ìà  àFirst,€there€was€substantial€evidence€that€Leavy€misused€hisÏcorporate€office€and€the€Bankððs€assets€to€obtain€the€opportunity€toÏparticipate€in€and€broker€the€Second€Trust€Loan,€to€solicitÏinvestors€for€that€loan,€and€to€obtain€the€secret€$650,000Ïbrokerage€fee.€€The€trial€court€found€that€in€failing€to€discloseÏthe€brokerage€fee,€Leavy€acted€for€his€personal€gain,€and€not€inÏthe€best€interests€of€the€Bank.Ìà  àHooper€was€the€Bankððs€largest€borrower.€€Federal€bankingÏregulators€had€already€criticized€the€Bank€for€its€unduly€riskyÏexposure€on€its€10€loans€to€Hooper,€and€had€directed€the€Bank€toÏreduce€that€exposure€by€restructuring€Hooperððs€debt.€€While€he€wasÏacting€solely€on€behalf€of€the€Bank€in€negotiating€theÏrestructuring€of€the€Hooper€loans,€Leavy€negotiated€a€restructuringÏplan€under€which€the€$6.6€million€debt€would€be€paid€down€to€Ïapproximately€$1.5€million,€within€one€year.€€That€plan€includedÏincreased€security€for€the€Bank,€via€an€escrow€account€andÐ 0+€&. Ðadditional€collateral.€€Hooper€agreed€to€the€plan€and€executed€theÏBankððs€February€27,€1989€loan€commitment€letter€based€upon€thoseÏterms.€€Ìà  àLeavy€testified€that€a€short€time€later,€Hooper€offered€LeavyÏthe€opportunity€to€make€some€money€on€the€side,€as€both€a€brokerÏand€an€investor.€€¢Leavy£€had€never€brokered€a€loan€before.€€AfterÏ¢Leavy£€agreed€to€participate€in€and€broker€the€Second€Trust€Loan€forÏHooper,€he€continued€to€act€as€the€Bankððs€representative€in€theÏdebt€restructuring€negotiations€with€Hooper.€€During€this€timeÏperiod,€Leavy€allowed€the€Bankððs€position€with€respect€to€theÏHooper€loans€to€deteriorate.€€Ìà  àAccording€to€the€Bankððs€expert€witness,€Steven€Butler,€aÏcertified€bank€fraud€examiner,€¢Leavy£€breached€his€duty€to€the€BankÏby€failing€to€disclose€the€fee€arrangement.€€Keeping€his€fee€secretÏfrom€the€Bank€prevented€the€other€directors€from€appreciating€thatÏLeavyððs€decisions€could€be€influenced€by€the€fee€and€by€his€dutiesÏto€the€Second€Trust€Loan€investors.€€€€ÌÓÓà8  àà8` Ð Ð à[Leavy]€was€president€of€the€bank,€in€effectÏacting€as€senior€loan€officer€.€.€.€or€a€loanÏofficer,€where€he€could€put€together€a€loanÏfor€the€[B]ank€up€to€the€[B]ankððs€lendingÏlimit,€and€at€the€same€time€would€be€able€toÏinfluence€other€people€potentially€to€investÏin€[the€Second€Trust€Loan].Ð ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àI€say€influence€because€this€is€not€yourÏtypical€loan€broker€going€out€trying€to€findÏfinancing.€€This€is€a€bank€president€andÏmoreover€a€bank€president€who€has€shownÏconfidence€in€this€borrower€by€making€a€loanÏto€the€extent€of€the€[B]ankððs€legal€lendingÐ ú+J'/ Ðlimit,€as€big€a€loan€as€this€[B]ank€couldÏmake.€€Ð ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àHere€was€someone€going€to€a€potentialÏinvestor€saying€.€.€.€Iððm€a€bank€president,€IÏthink€this€is€a€good€investment,€our€[B]ank€isÏinvesting€in€this€deal,€I€would€like€to€askÏyou€to€invest€in€this€deal.Ð ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThat€all€sounds€very€positive€and€veryÏconvincing€absent€the€fact€that€he€is€earningÏa€fee€for€doing€it€and€that€is€the€problem.€Ð ` x` x ÐÌà  àà ` àà ¸ àà  àà h àà À à*€*€*€ÌÌà  àà8 ` àThe€issue€.€.€.€[is]€disclosure,€just€let€theÏboard€know€.€.€.€.€[W]hen€the€board€is€makingÏa€loan€decision€for€the€bank,€it€knows€of€thatÏopportunity€for€the€banker€who€is€presentingÏthe€loan€[to€earn€a€brokerage€fee]€and€theyÏcan€take€that€into€consideration€when€theyÏmake€their€decision.€Ð ` x` x ÐÌÓ£pÓà  àButler€testified€that€Hooper€acquired€enormous€leverage€andÏinfluence€over€Leavy€once€Leavy€agreed€to€broker€the€Second€TrustÏLoan€in€his€personal€capacity.€€In€his€opinion,€the€Bankððs€positionÏvis„a„vis€the€Hooper€loans€substantially€deteriorated€from€FebruaryÏto€June€1989.€€A€series€of€commitment€letters€from€Leavy,€on€behalfÏof€the€Bank,€to€Hooper,€shows€that€Leavy€ultimately€caused€the€BankÏto€agree€to€a€restructuring€package€that€did€not€reduce€the€BankððsÏexposure€on€the€Hooper€loans,€but€did€facilitate€his€investment€andÏfee€on€the€Second€Trust€Loan.€€Unlike€the€February€loanÏrestructuring€deal€that€Leavy€struck€with€Hooper,€the€deal€thatÏLeavy€ultimately€recommended€to€the€Bankððs€board€in€June€1989€didÏnot€contain€the€same€immediate€and€short€term€pay€down€provisions.€ÏMoreover,€it€authorized€a€loan€of€$7.1€million€instead€of€$5.5Ð ú+J'/ Ðmillion,€and€did€not€require€escrow€of€taxes€and€insurance€onÏcollateral€properties.€€Instead,€it€provided€for€additionalÏsecurity€interests€in€other€properties€in€which€Hooper€had€anÏinterest,€including€the€Stringfellow€Road€property.€€€€Ìà  àThe€Cedar€Crest€Loan€ultimately€facilitated€the€Second€TrustÏLoan,€which€closed€the€same€day€as€the€Cedar€Crest€Loan,€and€theÏpayment€of€Leavyððs€brokerage€fee.€€Butler€testified€that€the€SecondÏTrust€Loan€ð ðput€the€[B]ankððs€loan€at€further€risk€because€there€wasÏeven€more€money€going€out€to€this€club€.€.€.€.ðð€€ð ð[¢I]n£€puttingÏtogether€a€second€trust€on€the€very€same€project,€Cedar€Crest,Ï[Leavy]€.€.€.€doubl[ed]€the€amount€of€exposure€that€the€projectÏhas,€.€.€.€and€committ[ed]€that€project€and€the€borrower€to€twiceÏthe€amount€of€debt€service.ðð€€Moreover,€by€increasing€the€amount€ofÏmoney€loaned€to€Hooper,€with€interest€only€payments,€rather€thanÏreducing€the€principal€balance€via€a€current€$1.4€million€pay€down,Ïand€future€scheduled€paydowns,€and€waiving€the€tax€and€insuranceÏescrow€requirement,€the€Bank€undertook€a€substantially€riskier€loanÏto€this€high€risk€real€estate€developer.€€Taking€additionalÏcollateral€was€not€an€equal€ð ðtradeoffðð€because€the€collateralÏproperty€ð"ð€the€country€club€ð"ð€could€not€sustain€the€debt€service,Ïand€the€entire€project€concept€had€never€been€subjected€toÏappropriate€scrutiny€via€standard€loan€underwriting€or€feasibilityÏstudies.€€Ìà  àWe€think€this€evidence€amply€supported€the€trial€courtððsÐ $+t&. Ðfactual€finding€that€ð ðLeavy€breached€his€duty€of€loyalty€by€usingÏhis€corporate€office€and€[the€Bankððs]€assets€for€personal€gain.ðð€ÏIn€addition€to€Leavyððs€disloyalty€in€failing€to€disclose€hisÏbrokering€the€Second€Trust€Loan,€we€also€find€substantial€evidenceÏto€support€the€trial€courtððs€findings€that€Leavy€breached€his€dutyÏof€loyalty€by€misusing€his€office€and€the€Bankððs€assets€in€severalÏother€ways.€€ÌÝ‚'‡¦ÿÝÝ  ÝÓÓà0  àÝ‚'‡¦h‚Ýð"ðà0` (#(#àÝ  ÝLeavy€misused€his€corporate€office€and€misused€the€BankððsÐ d´  Ðcollateral€to€obtain€payment€of€the€$650,000€brokerageÏfee€in€his€personal€capacity.€€Based€on€the€Bankððs€JuneÏ1989€commitment€letter€and€Leavyððs€correspondence€withÏHooper€after€the€Cedar€Crest€Loan€closed,€the€trial€courtÏfound€that€the€Bank€had€a€security€interest€in€theÏStringfellow€Loan€proceeds.€€¢Leavy£€admitted€that€heÏreleased€$75,000€of€the€Stringfellow€Road€proceeds€toÏHooper€and€First€Federal€on€the€day€before€First€FederalÏfunded€its€loan€to€Hooper.€€Butler€opined€that€theÏdocuments€showed€that€the€$75,000€was€used€to€obtain€theÏFirst€Federal€loan,€which€in€turn,€was€used€to€pay€LeavyÏthe€$650,000€fee.€€€Ýƒ'‡¦h‚¡‚݌Р` (#` (# ÐŒÝ  ÝÌÝ‚'‡¦ÿÝÝ  Ýà0  àÝ‚'‡¦Û…Ýð"ðà0` (#(#àÝ  ÝLeavy€failed€to€act€in€the€Bankððs€best€interests,€byÐ h Ðfailing€to€assert€the€Bankððs€collateral€rights€inÏ$200,000€of€the€Stringfellow€Road€proceeds,€by€permittingÏHooper€to€keep€that€money€for€himself,€and€by€using€theÏStringfellow€Road€proceeds€to€make€Hooperððs€interestÏpayments€on€the€Cedar€Crest€Loan€instead€of€requiringÏHooper€to€make€the€interest€payments€from€other€sourcesÏand€preserving€those€funds€for€repayment€of€principal.€ÏOn€appeal,€Leavy€has€not€directly€challenged€any€of€theseÏfindings,€electing€instead€to€contest€whether€the€BankÏactually€had€a€security€interest€in€that€property.€€WeÏshall€address€that€issue€in€part€2€of€this€opinion.݃'‡¦Û…†ÝŒÐ ` (#` (# ÐŒÝ  ÝÌÝ‚'‡¦ÿÝÝ  Ýà0  àÝ‚'‡¦ ‰Ýð"ðà0` (#(#àÝ  ÝLeavy€used€his€corporate€office€to€authorize€the€releaseÐ ö&F") Ðof€the€Jupiter€Road€property€as€collateral,€to€excludeÏthe€Jupiter€Road€property€as€collateral€for€the€CedarÏCrest€Loan,€and€to€secretly€use€the€Jupiter€Road€PropertyÏto€secure€Hooperððs€promissory€note€for€his€brokerage€fee.€ÏWe€think€there€was€substantial€evidence€to€support€theÏtrial€courtððs€conclusion€that€ð ð[w]hen€the€Jupiter€RoadÐ ú+J'/ ÐProperty€was€refinanced€in€1990,€Harry€Leavy€received€hisÏfee€of€$650,000,€and€[the€Bank]€received€nothing.ðð€€InÏfact,€Leavy€has€not€challenged€this€finding.€Ýƒ'‡¦ ‰G‰ÝŒÐ ` (#` (# ÐŒÝ  ÝÌÓƒ‚Óà  àAny€one€of€these€serious€misuses€of€corporate€office€andÏassets€was€sufficient€grounds€for€the€trial€courtððs€holding€thatÏLeavy€breached€his€fiduciary€duty€of€loyalty€to€the€Bank.€ÏCollectively,€they€establish€that€Leavy€made€a€calculated€decisionÏto€take€advantage€of€his€position€as€the€Bankððs€president,€chairmanÏof€the€board,€and€negotiator€on€the€Hooper€loan€account€to€obtainÏa€personal€benefit€that€the€Bank€did€not€know€about,€share€in,€orÏbenefit€from.€€In€doing€so,€he€compromised€his€loyalty€to€the€Bank,Ïand€clearly€failed€to€act€solely€in€its€best€interests.€€Ìà  àOn€appeal,€Leavy€has€not€addressed€the€trial€courtððs€findingÏthat€he€breached€his€duty€of€loyalty€by€misusing€his€corporateÏoffice€and€the€Bankððs€assets.€€Instead,€he€focuses€on€the€otherÏð ðconflict€of€interestðð€and€ð ðusurpation€of€corporate€opportunityððÏgrounds€for€the€judgment.€€The€Bank€urges€us€to€affirm€the€judgmentÏbased€solely€on€this€aspect€of€the€trial€courtððs€finding,€becauseÏð ðeven€if€Leavy€were€to€prevail€in€[the€other]€challenges€.€.€.,Ï[the]€judgment€against€him€would€still€be€supported€and€valid€basedÏonðð€his€misuse€of€corporate€office€and€property.€€€€à x àÐ t$Ä& Ðà  àAlthough€we€generally€agree€with€the€proposition€advanced€byÏthe€Bank,€we€recognize€that€in€other€parts€of€his€brief,€Leavy€hasÏchallenged€certain€factual€findings€underlying€the€trial€courtððsÏconclusion€that€Leavy€misused€his€corporate€office€and€assets.€Ð $+t&. ÐSpecifically,€Leavy€argues€that€(1)€the€Bankððs€exposure€on€itsÏloans€to€Hooper€was€actually€diminished€by€the€$7.1€million€CedarÏCrest€Loan;€(2)€the€expert€testimony€of€Steven€Butler€should€beÏdisregarded;€and€(3)€the€Bank€did€not€have€an€interest€in€theÏStringfellow€Road€proceeds.€€To€ensure€that€judgment€on€the€misuseÏgrounds€was€appropriate,€we€shall€address€each€of€these€contentionsÏas€it€relates€to€the€misuse€of€corporate€office€and€assetsÏrationale€of€the€trial€court.€€For€the€reasons€discussed€below,€weÏfind€that€none€of€Leavyððs€contentions€has€merit.€ÌÓ  ÓÓÓà @ àò ò2.Ð ¼  ÐLeavyððs€DefensesÌÌó óÓ]”ÓÓi”Óà  àLeavy€argues€that€the€Cedar€Crest€Loan€actually€reduced€theÐ h¸ ÐBankððs€exposure€on€the€Hooper€loans,€because€it€was€secured€byÏcollateral€with€a€higher€value.€€He€tallies€up€the€purported€valueÏof€the€collateral€properties€as€grounds€for€this€contention.€€We€doÏnot€think€the€evidence€cited€by€Leavy€mandates€this€conclusion.€ÏMore€importantly,€however,€Leavyððs€focus€on€the€difference€betweenÏthe€Hooper€loans€before€the€restructuring€negotiations€began€inÏearly€1989€and€the€final€Cedar€Crest€Loan€in€June€1989€isÏmisplaced.€€As€the€Bank€correctly€points€out,€the€relevantÏcomparison€for€purposes€of€evaluating€Leavyððs€conduct€is€betweenÏthe€restructuring€terms€that€Leavy€negotiated€in€February€1989,Ïbefore€he€began€brokering€the€Second€Trust€Loan,€and€theÏrestructuring€terms€that€Leavy€negotiated,€accepted,€recommended,Ïand€persuaded€the€Bankððs€board€of€directors€to€accept€in€June€1989,Ð $,t'/ Ðafter€he€brokered€the€Second€Trust€Loan.€€The€trial€court€properlyÏrelied€on€the€expert€testimony€of€Steven€Butler€and€the€series€ofÏcommitment€letters€from€the€Bank€to€Hooper€in€making€its€findingÏthat€the€Bankððs€position€deteriorated€during€this€period.€€ByÏitself,€that€evidence€supported€the€trial€courtððs€finding€thatÏLeavy€misused€his€corporate€office€and€the€Bankððs€assets€to€advanceÏhis€personal€interests,€and€in€doing€so,€compromised€the€BankððsÏbest€interests.€€It€alone€merited€the€judgment€against€Leavy.Ìà  àOn€appeal,€Leavy€challenges€Butlerððs€testimony€on€the€groundsÏthat€it€is€not€credible,€for€a€list€of€reasons€outlined€in€itsÏbrief.€€The€simple€answer€is€that€we€may€not€reassess€theÏcredibility€of€this€expert€witness,€or€the€weight€of€his€testimony.€ÏThat€is€quintessentially€a€job€for€the€trial€court€sitting€as€aÏfact„finder€in€this€bench€trial.€€òòSeeóó€Md.€Rule€8„131(c).€€InÐ l¼ Ðdeciding€whether€there€is€sufficient€evidence€to€support€the€trialÏcourtððs€factual€finding,€we€assume€the€truth€of€all€the€evidenceÏrelied€upon€by€the€trial€court,€and€of€all€favorable€inferencesÏfairly€deducible€from€that€evidence.€€òòSee€Carling€Brewing€Co.€v.Ð (!x" ÐBelzner,óó€15€Md.€App.€406,€412€(1972).€€ð ð[I]f€there€is€anyÐ à"0$ Ðcompetent,€material€evidence€to€support€the€factual€findings€below,Ïthe€weight€and€value€of€such€evidence€must€be€left€to€the€trier€ofÏfacts,€as€it€is€not€our€function€to€determine€the€comparativeÏweight€of€conflicting€evidence.ðð€€òòId.óó€€In€this€case,€ButlerððsÐ œ)ì$, Ðtestimony€supported€his€opinion€that€the€deterioration€in€theÐ T+¤&. ÐBankððs€position€from€February€to€June€reflected€that€LeavyððsÏloyalties€and€judgment€had€been€compromised€by€his€simultaneousÏbrokering€of€the€Second€Trust€Loan.€€Thus,€it€supported€the€trialÏcourtððs€findings€of€deterioration,€misuse€of€office,€failure€to€actÏin€the€Bankððs€best€interest,€and€ultimately,€of€disloyalty.Ì€à  àFinally,€Leavy€challenges€the€trial€courtððs€finding€that€heÐ  \  Ðbreached€his€duty€of€loyalty€by€mishandling€the€Stringfellow€RoadÏproceeds,€by€arguing€that€the€Bank€did€not€have€a€security€interestÏin€the€Stringfellow€Road€property€or€proceeds.׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€In€support€of€thatÐ `  Ðargument,€he€contends€that€the€Bankððs€documents€do€not€clearlyÏestablish€the€Bankððs€security€interest€in€this€property.€€InÏresponse,€the€Bank€points€out€that€its€June€1989€commitment€letterÏincludes€the€Stringfellow€Road€property€as€collateral€for€the€CedarÏCrest€Loan.€€It€also€draws€our€attention€to€the€following€excerptÏfrom€a€February€23,€1990€letter€from€Leavy€to€Hooper,€in€whichÏLeavy€asserts€the€Bankððs€security€interest€as€the€proceeds€of€aÏcondemnation€award€for€the€property€were€being€distributed€by€theÏStringfellow€Road€partnership.€€€€ÌÓÓà8  àà8` Ð Ð à[The]€Bank,€by€virtue€of€an€Assignment€ofÏPartnership€Interest€has€[¢a]dditional£Ï[¢s]ecurity£€dated€June€22,€1989,€has€a€securityÏinterest€in€the€funds€being€distributed€in€theÏreferenced€partnership.€€The€assignment€datedÏJune€22,€1989€replaces€the€assignment€datedÏApril€25,€1988.€€It€is€our€understanding€thatÐ Ì'#* Ðthe€Partnership€intends€to€make€an€immediateÏdistribution€of€funds.€€Accordingly,€[the]ÏBank€agrees€to€the€following€distribution:€.€.Ï.€.Ð ` x` x ÐÌØ€ØÝ‚*nÿÝÝ  Ýà8  àà8` Ð Ð àÝ‚*n€¦ÝÚƒÚ2Ú  Ú.à0¸ ` x` xàÝ  ÝAmerican€Federal€Savings€Bank€ð"ð$800,000݃*n€¦»¦ÝÛ€ÛŒÐÞ.¸ x¸ x ÐŒÝ  Ýà8  àà8` Ð Ð àÐ ` x` x ÐÝ‚*nÿÝÝ  Ýà8  àà8` Ð Ð àÝ‚*nħÝÚƒÚ3Ú  Ú.à0¸ ` x` xàÝ  ÝEugene€N.€Hooperà0¸ x¸ xàà0pxxàà0Èpxpxàð"ð€Balance݃*nħÿ§ÝۀیЊ ÚÈxÈx ÐŒÝ  Ýà8  àà8` Ð Ð àÐ ` x` x Ðà8  àà8` Ð Ð àPlease€cause€these€funds€to€be€wired€not€laterÏthan€2€p.m.€this€date€.€.€.€.€ÓB¤ÓÐ ` x` x ÐMoreover,€a€February€22,€1990€letter€from€Richard€F.€Boddie,ÏLeavyððs€attorney,€indicates€that€Leavyððs€February€23òòrdóó€letter€merelyÐ d´  Ðcopied€a€draft€letter€that€Boddie€forwarded€in€order€to€ð ðtimely€andÏproperly€conclude€the€distribution€of€funds€from€the€condemnationÏaward€.€.€.€.ðð€€There€was€uncontroverted€evidence€that€the€proceedsÏwere€distributed€in€accordance€with€the€instructions€in€LeavyððsÏletter€to€Hooper.€€€Ìà  àWe€agree€with€the€Bank€and€the€trial€court€that€theseÏdocuments€are€sufficient€to€establish€that€the€Bank€had€a€securityÏinterest€in€the€Stringfellow€Road€proceeds,€and€that€¢Leavy£€knewÏthat€the€Bank€was€looking€to€the€Stringfellow€Road€proceeds€asÏcollateral€for€the€Cedar€Crest€Loan.€€Accordingly,€we€find€no€errorÏin€the€trial€courtððs€finding€that€Leavy€breached€his€fiduciary€dutyÏto€the€Bank€by€acting€for€his€personal€interests€and€by€failing€toÏprotect€the€Bankððs€best€interests€with€respect€to€the€StringfellowÏRoad€proceeds.Ìà  àIn€doing€so,€we€also€wish€to€comment€on€the€exclusion€of€the€Ïtwo€February,€œ1990›€letters€from€Leavyððs€record€extract.€€They€bearÐ $+t&. Ðdirectly€upon€a€question€that€Leavy€raised€in€his€brief€„„€whetherÏ¢Leavy£€knew€that€the€Bank€had€a€security€interest€in€theÏStringfellow€Road€proceeds.€€The€letters€were€written€by€Leavy€andÏBoddie.€€Their€words€in€these€letters€contradict€their€argument€inÏthis€appeal.€€Clearly,€these€documents€were€relevant€and€materialÏto€this€appeal.€€They€should€have€been€included€in€Leavyððs€extract.€ÏòòSeeóó€Md.€Rule€8„501(c)€(ð ðThe€record€extract€shall€contain€all€partsÐ ¸  Ðof€the€record€that€are€reasonably€necessary€for€the€determinationÏof€questions€presented€by€the€appealðð).€€Apparently,€they€wereÏexcluded€because€Leavy€and€Boddie€chose€not€to€include€them,€andÏnot€to€comply€with€the€requirements€of€our€appellate€rulesÏgoverning€the€preparation€of€the€record€extract.€€òòSeeóó€Md.€Rule€8„Ð  p Ð501(d).€€We€find€that€this€attempt€to€challenge€the€trial€courtððsÏfactual€finding€without€addressing€these€critical€documentsÏreflects€poorly€on€counselððs€skills€or€his€candor€with€this€Court.€ÏWe€expect€better€conduct€from€members€of€this€bar.Ìò òÓÓÓ  Ó3.Ð ˆØ  ÐAlternative€Findings€Of€Breachó óÐ l ¼! ÐÌÓ²ÓÓ°²Óà  àThe€trial€court€also€concluded€that€Leavy€breached€hisÏfiduciary€duty€of€loyalty€by€placing€himself€in€a€conflict€ofÏinterest€with€the€Bank,€and€by€misappropriating€the€BankððsÏopportunity€to€broker€the€Second€Trust€Loan.€€In€light€of€ourÏholding€that€Leavy€has€failed€to€establish€that€the€trial€courtÏerred€in€finding€that€he€misused€his€corporate€office€and€theÏBankððs€assets,€we€will€not€address€these€alternative€grounds.€Ð .,~'/ Ðò òÓ  ÓÓÓC.Ð ° ÐJudgment€Against€Christopher€LeavyÌÌÓÓÓ  Óó óà  àLeavy€argues€that€it€was€error€for€the€trial€court€to€enterÐ \¬ Ðð ðtwo€separate€judgments€for€the€same€monies,ðð€because€if€the€BankÏcollects€on€both€the€judgment€against€Christopher€and€the€judgmentÏagainst€Leavy,€the€Bank€will€obtain€a€double€recovery€windfall.€€HeÏcontends€that€he€is€entitled€to€a€ð ðdollar„for„dollarðð€credit€forÏany€monies€paid€by€his€son€Christopher,€and€asks€us€to€modify€theÏjudgment€accordingly.€€Ìà  àThe€Bank€counters€that€the€two€separate€judgments€are€typicalÏwhen€a€plaintiff€has€or€seeks€a€judgment€against€both€theÏfraudulent€transferor€and€the€transferee.€€It€asserts€that€it€ð ðhasÏnot€interpreted€the€judgments€to€combine€into€a€$1.5€millionÏtotal,ðð€but€that€it€is€ð ðentitled€to€a€total€recovery€ofÏ$1,023,856.85,€plus€post„judgment€interest.ðð€€Finally,€it€pointsÏout€that€Christopher€Leavy€did€not€appeal€the€judgment€against€him,Ïwhich€the€Bank€has€released€as€the€result€of€the€negotiation€ofÏcertain€voluntary€payments€and€transfers€of€stock€to€the€œBank.›Ìà  àWe€think€the€entry€of€two€separate€judgments€was€proper,€evenÏthough€the€Bank€may€only€collect€a€total€of€$1,023,856.85,€plusÏinterest.€€Because€the€Bank€has€collected€some€unspecified€amountÏfrom€Christopher€Leavy,€and€has€released€its€judgment€againstÏChristopher€Leavy,€however,€it€is€appropriate€that€Leavy€now€beÏcredited€with€those€amounts€collected.€€We€will€not€vacate€theÏjudgment€against€Leavy.€€We€remand€the€case€to€the€trial€court,Ð $,t'/ Ðhowever,€for€such€proceedings€as€are€necessary€to€determine€howÏmuch€credit€to€apply€against€the€Harry€Leavy€judgment€for€the€moneyÏand€stock€the€Bank€has€received€from€Christopher€¢Leavy£.ÌÌÒì°ÒÓÓò òJUDGMENT€AFFIRMED,€BUT€CASEÐ ` ° ÐREMANDED€FOR€FURTHER€PROCEEDINGSÏREGARDING€EXECUTION€OF€THEÏJUDGMENT.€€COSTS€TO€BE€PAID€BYÏAPPELLANT.ó óÐ ð@  ÐÒ°ìÒ