Opinion ID: 1209978
Heading Depth: 1
Heading Rank: 3

Heading: there are genuine issues of material fact concerning the breach of fiduciary duty claim.

Text: Jones asserts that a genuine issue of material fact exists concerning whether Runft violated a fiduciary duty toward Jones. We agree, and conclude that there are other genuine issues of material fact concerning whether the statute of limitations precludes Jones's assertion of this claim. The trial court concluded that although Runft may have been acting as a depository of funds on behalf of Jones, any fiduciary duty arising from this action was fulfilled by Runft when the check was delivered to the escrow company. We conclude that there is a genuine issue of material fact whether Runft breached a fiduciary duty he owed to Jones. Although there was not a formal escrow agreement between Jones and Runft, a fiduciary duty may stem from informal actions and agreements between the parties. In Stearns v. Williams, 72 Idaho 276, 288, 240 P.2d 833, 840-41 (1952), the Court stated: A fiduciary relationship does not depend upon some technical relation created by or defined in law, but it exists in cases where there has been a special confidence imposed in another who, in equity and good conscience, is bound to act in good faith and with due regard to the interest of one reposing the confidence. By agreeing to receive Jones's $320,000 jointly with his client, Runft became, in essence, an intermediate escrow holder of the loan money. The fact that Runft was acting as NIJC's attorney at this time did not relieve Runft of his fiduciary duty toward Jones in handling the loan money. In All American Realty Inc. v. Sweet, 107 Idaho 229, 687 P.2d 1356 (1984), the Court held that summary judgment in favor of an attorney who acted as an escrow agent and closing agent in a real estate action was not proper because there was a question of fact concerning whether the attorney violated the escrow instructions. Unless it is undisputed that Runft acted in accordance with any duty he assumed in handling the money, it is not proper to grant summary judgment. Runft's delivery of the funds to the escrow company does not discharge the fiduciary duty alleged by Jones. Jones contends that Runft was to hold the funds pending the closing of the transaction. If Jones entrusted Runft with holding the funds until the closing of the real estate transaction, it would be illogical to allow Runft to discharge a fiduciary duty to Jones by merely delivering the check to the escrow company prior to the closing. This would undermine the reason Jones entrusted Runft to hold the funds. Therefore, we conclude there is a genuine issue of material fact concerning Runft's breach of a fiduciary duty he had to Jones. The law firm asserts that even if a genuine issue of material fact exists concerning breach of a fiduciary duty, we should uphold the trial court's summary judgment on this claim based on the statute of limitations. Runft argues that we should characterize the breach of fiduciary duty claim as a professional malpractice claim and apply the two-year statute of limitations of I.C. § 5-219(4). Runft cites Griggs v. Nash, 116 Idaho 228, 775 P.2d 120 (1989) in support of applying I.C. § 5-219(4) in this case. Although the claims set forth against the attorney in Griggs are factually similar to the claims brought against Runft in this case, Griggs does not resolve the statute of limitations issue presented here. Griggs concerned summary judgment in favor of a third-party defendant in a claim for indemnity or contribution to a third-party plaintiff. The attorney in Griggs stipulated, for summary judgment purposes, that he was hired by the third-party plaintiffs to handle the loan closing. The Court held that the only valid claim alleged by the third-party plaintiff was a claim of malpractice and applied the professional malpractice statute of limitations contained in I.C. § 5-219(4). In this case, the parties agree that Runft was not Jones's attorney. Therefore, there is no basis for applying I.C. § 5-219(4). Jones's claim for breach of fiduciary duty is not covered by any of the other specific statutes of limitations. Therefore, we apply the four-year statute of limitations contained in I.C. § 5-224. As in the case of the assumed duty claim discussed above, a claim for a breach of a fiduciary duty is a negligence action in which the duty to act is created by the relationship between the parties. As a negligence action, we must analyze when the first act of negligence occurred. As in the case of the assumed duty claim, the first act of negligence occurred at or before the release of the loan proceeds on September 1, 1983. This is more than four years before Jones sued the law firm. Again, however, as in the case of the assumed duty claim, the trial court had no occasion to address when Jones first suffered some damage. Jones also asserts that the law firm is estopped from asserting that the statute of limitations bars the fiduciary duty claim. We do not address this issue, because it is premature. Whether the trial court needs to address estoppel depends on the resolution of the merits of the breach of fiduciary duty claim, or when Jones suffered some damage, or both.