Opinion ID: 1910437
Heading Depth: 1
Heading Rank: 5

Heading: Breach of Fiduciary Duty Issue

Text: The plaintiffs also suggest that the trial justice erred in finding that there was no breach of a fiduciary duty. They contend that Joseph had a fiduciary relationship with Roald and that Joseph was in a separate fiduciary relationship with Ronald, Roald, and Judy. The plaintiffs seem to argue, although not in a particularly developed manner, that these fiduciary relationships were breached and that, therefore, the Superior Court should have imposed a constructive trust. We disagree. We have previously held that [t]he underlying principle of a constructive trust is the equitable prevention of unjust enrichment of one party at the expense of another in situations in which legal title to property was obtained by fraud or in violation of a fiduciary or confidential relationship. Renaud v. Ewart, 712 A.2d 884, 885 (R.I. 1998) (mem.); see also Dellagrotta, 873 A.2d at 111. We have also stated that [a] constructive trust will be imposed upon property that is obtained in violation of a fiduciary duty. Simpson v. Dailey, 496 A.2d 126, 128 (R.I.1985). In order to convince the court that imposition of a constructive trust is warranted, a plaintiff is required to show by clear and convincing evidence (1) that a fiduciary duty existed between the parties and (2) that either a breach of a promise or an act involving fraud occurred as a result of that relationship. Renaud, 712 A.2d at 885; see also Cahill v. Antonelli, 120 R.I. 879, 882-83, 390 A.2d 936, 938 (1978). At trial, Ronald contended that Joseph assumed a position of trust which carried with it fiduciary responsibilities towards Ronald when he agreed to take care of Ronald and Anna. Ronald further asserted that Joseph (1) breached this duty by taking advantage of Ronald's alleged misunderstanding of the March 25, 1998 quitclaim deed and (2) committed fraud by refusing to convey to him an exclusive life estate in the property. We need not reach the issue of whether any fiduciary duties were owed by Joseph since, even if he had such duties, it is clear from the record that there is no basis for finding any breach. The trial justice concluded that Joseph owed no duty to convey to Ronald an exclusive life estate enabling him to decide whether or not Monique could reside in the house on the Snell Road property, and we agree. Since we have held in section I, supra, that no reasonable person could have been mistaken as to the effect of the March 25, 1998 deed, it follows that there is no basis for finding a violation of any fiduciary duties Joseph may arguably have had. Furthermore, Joseph had never promised to grant Ronald an exclusive life estate in the property. Accordingly, we deny plaintiffs' appeal in this respect.