Opinion ID: 874351
Heading Depth: 1
Heading Rank: 7

Heading: Whether the district court's findings are supported by the evidence presented at trial.

Text: Cornerstone contends that the following findings were reached by the district court in error because the district court relied on information in affidavits which were not admitted as evidence at trial and, therefore, these findings are not supported by substantial and competent evidence: 42. On July 20, 2007, each owner of the five (5) IRA accounts filed affidavits with this Court, ratifying and confirming the actions of APS in this litigation and authorizing APS to continue pursuing the claims against Cornerstone. The signature pages to each of these affidavits were hand-filed with the Court on August 1, 2007. 43. On August 1, 2007, this Court joined each of the five (5) IRA members, Downs, C. DeYoung, Sequra [sic], D. DeYoung and Henderson as plaintiffs. ... 46. Curtis DeYoung or APS was acting as an agent with authority to invest IRA funds owned by Downs, C. DeYoung, Sequra [sic], D. DeYoung and Henderson when the oral agreements were made with Cornerstone's promoters in 2003 and when the loans were made in 2003 through 2004. The $750 per lot consideration was part of the oral agreements made for plaintiffs Downs, C. DeYoung, Sequra [sic], D. DeYoung and Henderson. ... 53. Henderson, Downs, Dean DeYoung, and Segura had no knowledge of the loans made to Cornerstone. The foregoing individuals did not know of the substance of any agreement for funds loaned and terms of repayment between APS and Cornerstone. 54. Henderson, Downs, Segura and Dean DeYoung orally delegated all decisions to Curtis DeYoung. ... 56. DeYoung, in his individual capacity, made investment decisions for all five account holders. 57. DeYoung admitted that he is not a trustee and he is acting as a non-licensed financial advisor who is making investment decisions as a friend and/or familial advisor. APS initially claimed it was entitled to the per lot fee. After discovery, it claimed the per lot fee was due to the five individuals. APS asserts that paragraph 42 and paragraph 43 were detailing the procedural history in this case. APS further contends that paragraphs 46, 53, and 54 were supported by substantial and competent evidence in the record, and that paragraphs 56 and 57 were consistent with the evidence presented. All the paragraphs that Cornerstone alleges as erroneous constitute findings of fact. Therefore, this Court's review is limited to whether those findings are clearly erroneous and not supported by substantial and competent evidence. The information contained in all the paragraphs came from various exhibits admitted at trial and the testimony of Curtis DeYoung at trial. The district court did not rely on the contested affidavits or evidence not produced at trial. This Court holds that the district court's findings were supported by substantial and competent, although conflicting, evidence and therefore, affirms the district court's findings of fact. Cornerstone further contends that it was error for the district court to find that APS was the agent of the five individual plaintiffs. However, one of Cornerstone's exhibits at trial was entitled American Pension Services, Inc., Trust Agreement. That agreement stated that APS had the power to commence or defend suits or legal proceedings with respect to the [IRA], and to represent [the account holder] in all such suits or legal proceedings. Although the trust agreement is unsigned it is uncontested that APS and Cornerstone entered into a contract for APS to loan Cornerstone monies. It is further uncontested that the monies APS loaned and controlled belonged to the five individuals. Curtis DeYoung also testified that an agreement existed between the five individuals and APS to hold and control their retirement accounts. Substantial and competent evidence exists to support the district court's finding that some form of a written agreement existed between APS and the five individuals and that APS was acting as the agent of the five individuals when it loaned monies to Cornerstone.