Bock v. Brody

870 P.2d 530, 1993 WL 316181
CourtColorado Court of Appeals
DecidedApril 11, 1994
Docket92CA0914
StatusPublished
Cited by8 cases

This text of 870 P.2d 530 (Bock v. Brody) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bock v. Brody, 870 P.2d 530, 1993 WL 316181 (Colo. Ct. App. 1994).

Opinions

[532]*532Opinion by

Judge RULAND.

Plaintiff, Thomas H. Bock, appeals from a judgment granting a directed verdict in favor of defendant, Robert D. Brody, on claims of fraud, fraudulent inducement to enter a contract, and breach of fiduciary duty. He also appeals the dismissal without prejudice of an unjust enrichment claim. Defendant cross-appeals the trial court’s determination that the unjust enrichment claim should be dismissed without prejudice. We affirm in part, reverse in part, dismiss the appeal in part, and remand the ease for further proceedings.

Because a directed verdict was granted at the close of plaintiffs evidence, we must construe the evidence in a light most favorable to plaintiff. United Bank v. One Center Joint Venture, 773 P.2d 637 (Colo.App.1989).

As of 1977, plaintiff was employed by a stock brokerage firm as the director of research. He also was assigned underwriting duties.

Plaintiff met defendant early in 1978. Defendant then owned all of the stock of American Growth Sponsors, Inc., which functioned as a sales company for mutual funds including a mutual fund controlled by defendant. Defendant also owned all of the stock of Investment Research Corporation which served as an investment advisor to the mutual fund.

The parties met in connection with a research assignment and developed a friendship thereafter. Subsequently, in response to an offer by defendant, plaintiff commenced employment with American Growth and Investment Research in December 1978.

During the next year, the parties developed a close personal relationship in the course of daily lunches, social events held between their respective families, and joint vacations. In this connection, plaintiffs testimony suggests that the relationship was akin to that of father and son.

Late in 1979, the underwriting market dissipated for the type of transactions handled by plaintiff for defendant’s corporations. Plaintiff indicated to defendant that he might have to seek employment elsewhere.

In April or May 1980, the parties discussed whether plaintiff should abandon his career in corporate finance and underwriting and focus on selling shares of the mutual fund. However, plaintiff was reluctant to do so because of his lack of experience in that area.

In order to induce plaintiff to make the transition, defendant promised to leave all of his stock in the corporations to plaintiff in his will. Defendant also promised to take only enough money from the corporations to meet living expenses and to reinvest the remainder of any profits in the corporate business. Finally, defendant promised that he would install and maintain plaintiff as a director of Investment Research and American Growth.

Thereafter, plaintiff testified that he accompanied defendant to a bank where defendant showed plaintiff an executed codicil to his will. The codicil was consistent with defendant’s promises except that no reference was made to defendant’s commitment relative to his compensation from the corporations or plaintiffs position as a director of each corporation. Plaintiff further testified that a written codicil produced by defendant prior to trial which did not incorporate defendant’s promise concerning the stock was not the same codicil that he had reviewed at the bank. This testimony must also be regarded as credible for purposes of defendant’s motion.

Called as an adverse witness, defendant contradicted much of plaintiffs testimony. He stated that he had no intent to devise his stock to plaintiff in connection with the discussions relative to plaintiff undertaking sales of the mutual fund shares, and insofar as plaintiff relies upon this statement in support of his claims, we must do so as well.

Plaintiff was demoted by defendant from his position with the corporations in 1991. This litigation followed.

The original complaint included claims for breach of contract to make a will and breach of the covenant of good faith and fair dealing. These claims were dismissed before trial and that ruling is not challenged on appeal.

The original complaint also named American Growth and Investment Research as defendants. These parties were dismissed pri- [533]*533or to trial without prejudice pursuant to C.R.C.P. 41(a)(2). Also prior to trial, the court determined that the case should be severed and that the issue of liability only should be tried first.

I.

Both parties challenge the trial court’s dismissal without prejudice of plaintiffs claim for unjust enrichment. The basis for its order was that American Growth and Investment Research were not retained as parties to the proceeding and that any benefit conferred by plaintiff under his unjust enrichment theory accrued to these corporations.

Neither party challenges the conclusion that the corporations were benefitted by plaintiffs sales efforts, at least in part, and that these entities should be parties to any resolution of this claim. However, defendant argues that the dismissal must be with prejudice as to him. Plaintiff maintains, on the other hand, that any dismissal was erroneous because the evidence established his claim. We dismiss the appeal as to this claim.

Absent exceptions not urged here, a dismissal without prejudice is not a final order for purposes of appellate review. See B.C. Investment Co. v. Throm, 650 P.2d 1333 (Colo.App.1982). And, the court may dismiss a claim without prejudice at the close of plaintiffs evidence if, as here, it concludes that indispensable parties have not been included as required by C.R.C.P. 19. C.R.C.P. 41(b)(1); see 9 C. Wright & A. Miller, Federal Practice & Procedure § 2371 (1971).

II.

Plaintiff contends that the trial court erred in dismissing his claim for breach of fiduciary duty. In support of this contention, he relies upon the court’s ruling that the evidence was sufficient to establish a confidential relationship between the parties, and he contends that this same evidence was sufficient to establish a fiduciary relationship as well. In the alternative, plaintiff contends that the evidence was sufficient to establish a partnership between the parties, thus creating a fiduciary relationship between them as a matter of law. We disagree with both contentions.

A.

Generally, a fiduciary is defined as one who, by an agreement to undertake certain obligations for the benefit of another, retains a duty to act primarily for the benefit of the other in all respects connected with the undertaking because of the trust and confidence reposed. Destefano v. Grabrian, 763 P.2d 275 (Colo.1988). However, the existence of a confidential relationship, without more, is insufficient to establish a fiduciary relationship. See First National Bank v. Theos, 794 P.2d 1055 (Colo.App.1990); 1 A. Scott, Trusts § 2.5 (3rd ed. 1967). And, in this jurisdiction, we do not recognize a separate tort founded upon breach of a confidential relationship. Todd Holding Co. v. Super Valu Stores, Inc., — P.2d- (Colo.App. No. 91CA1779, July 1, 1993);

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Bluebook (online)
870 P.2d 530, 1993 WL 316181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bock-v-brody-coloctapp-1994.