Opinion ID: 619438
Heading Depth: 2
Heading Rank: 2

Heading: Mr. Broaddus’ Breach of Fiduciary Duty Claim

Text: Against Mr. Shields On May 30, 2008—five years and two months after selling his interest in Will Partners—Mr. Broaddus, an Illinois citizen, filed a Complaint in state court against Mr. Shields, a California citizen, for breach of fiduciary duty. Mr. Shields removed Mr. Broaddus’ action to federal court on the basis of diversity jurisdiction. The parties agree that Illinois law governs Mr. Broaddus’ claim and that a five-year statute of limitations applies. Early in the case, on December 29, 2008, Mr. Shields filed a motion for summary judgment, arguing that the five-year statute of limitations barred Mr. Broaddus’ claim. In response, Mr. Broaddus attested that Mr. Shields had told him that WKI was not paying its rent to Will Partners and that he was not able to verify that WKI was actually paying its rent until the summer of 2003 when Ed Hayes confirmed that information. The district court denied Mr. Shields’ request for summary judgment, in part, because of Mr. Broaddus’ representations about the Hayes conversation. The court also concluded that although it was possible for Mr. Broaddus to discover his injury in March 2003, the parties had offered no evidence regarding any knowledge Mr. Broaddus should have possessed at that time. The district court also lifted a previously imposed stay of discovery. On February 8, 2010, Mr. Shields filed a renewed motion for summary judgment, again raising the statute of limitations. Mr. Shields challenged the admissibility of the earlier evidence submitted by Mr. Broaddus to 6 No. 11-1117 support application of the discovery rule. On reply, Mr. Shields also noted critical discrepancies between Mr. Broaddus’ declaration and his deposition. In response to Mr. Shields’ renewed summary judg- ment motion, Mr. Broaddus admitted that Mr. Hayes had no personal knowledge regarding whether WKI was paying its monthly rent during the relevant time period. Nevertheless, Mr. Broaddus submitted an amended affidavit containing many of the same representations from his prior affidavit, including his representation that he was not able to verify that WKI was paying its rent until the summer of 2003 when Mr. Hayes con- firmed that information. The district court ultimately granted Mr. Shields’ renewed motion for summary judgment. After analyzing the Illinois discovery rule, the district court concluded that Mr. Broaddus could not rely on his self-serving affidavit to create an issue of material fact when his deposition testimony directly contradicted his representations regarding any conversation with Mr. Hayes. Because Mr. Broaddus made no attempt to explain the discrepancy, and the district court found that his attestations regarding the alleged conversation with Mr. Hayes were not based on personal knowledge, the district court concluded that Mr. Broaddus had not met his burden to invoke application of the discovery rule. Consequently, the district court held that Mr. Broaddus’ breach of fiduciary duty claim was barred by the statute of limitations. Mr. Broaddus appeals that decision. No. 11-1117 7