Bernice Bisbee is a real estate broker employed by Midkiff Realty, Inc. In September 1972, she obtained from Richard and Marian Silva an exclusive listing agreement for the sale of their property in Kaleheo, Kauai. The land, which fronted on the Kaumualii Highway, consisted of 34,392 square feet, one two-bedroom house, and one four-bedroom house. The Silvas told Ms. Bisbee that they wanted $100,000 for the property.

Sometime later, Ms. Bisbee obtained an offer for the property from David Larsen. The down payment was set at $35,000, with payments of $2,000 a month at 8% a year, but Mr. Larsen backed out before closing. After that, a joint venture of six members formed the Pacific Equity Associates to buy the property. Ms. Bisbee was to manage the joint venture and would receive 10% of the profits for her services. One of the joint venture members, Toshio Morikawa, appeared as the buyer at the July 1973 closing of the property sale. Ms. Bisbee did not tell the Silvas of the venture nor of her pecuniary interest in it.

In August 1973, Ms. Bisbee prepared for the venture a financial statement that listed the market value of the Silva property at $149,424. Several times, the venture was late making payments, which Ms. Bisbee covered. Mr. Silva and his wife were emotionally distressed about the late payments and told Ms. Bisbee. Eventually, because of defaults on the payments, the Silvas brought suit to cancel the contract and for damages for fraud by Ms. Bisbee, naming Midkiff Realty in the suit as well.

The jury returned a verdict for $29,000 in general damages for the Silvas and $50,000 in punitive damages. Ms. Bisbee and Midkiff appealed. Was there a breach of fiduciary duty? Should the damage award stand because of Ms. Bisbee's actions? [Silva v Bisbee, 628 P.2d 214 (Haw. App. 1981)]