Opinion ID: 1142598
Heading Depth: 1
Heading Rank: 4

Heading: sufficiency of evidence against robert anderson

Text: UFA's arguments thus far have been based upon the assumption that the trial court's findings as to Anderson's tortious conduct were warranted. Under this point of the appeal, however, UFA submits that the evidence is insufficient to support a verdict against Anderson for breach of fiduciary duties owed to plaintiff. The first finding contested by UFA is finding No. 25 of the trial court's findings of fact and conclusions of law, which states that Anderson breached his fiduciary duty by unilaterally determining not to represent plaintiff and by not advising plaintiff that he was not representing him in the sale of the business. UFA claims that plaintiff relinquished his right to Anderson's expertise and agency when he negotiated privately with the purchasers regarding the terms of the earnest money agreement and signed said agreement after being advised by Anderson that its terms were not in accordance with the Bulk Sales Act. The second contested finding is No. 26, wherein the trial court concluded that Anderson had breached his fiduciary duty in that he did not investigate the solvency of JCM. UFA contends that there is no duty on the part of a real estate agent to ascertain the financial solvency of a purchaser. The third finding, No. 27, disputed by UFA, states that Anderson breached his fiduciary duty by failing to have an attorney conduct the closing. UFA claims that Anderson did not intend the August 14, 1978 meeting as a closing, and further, that his participation in the events of that meeting was very minimal since the transaction was conducted under the authority of Gleason (J.G. Realty). Our survey of the record reveals that there is substantial evidence to sustain the trial court's findings as to Anderson's breach of fiduciary duties. We reiterate our rule with respect to reviewing the findings and judgment of the trial court: In considering the attack on the findings and judgment of the trial court, it is our duty to follow these cardinal rules of review: to indulge them a presumption of validity and correctness; to require the appellant to sustain the burden of showing error; to review the record in the light most favorable to them; and not to disturb them if they find substantial support in the evidence. [19] The trial court found that Anderson had breached at least five duties owed to plaintiff. [20] With respect to Anderson's duty to advise plaintiff that he was no longer representing him in the sale of the construction business (finding No. 25), the record shows: plaintiff was never informed by Anderson or UFA that the agreed-upon representation evidenced by the listing agreement had terminated; Anderson's testimony that he had informed all parties that he would not participate in the sale if it were conducted as a simple stock transfer was contradicted by the testimony of plaintiff and others; and Anderson's participation continued through the consummation of the transaction. This evidence substantially supports the trial court's finding No. 25. As to finding No. 26, the record shows that Anderson, on numerous occasions, represented to plaintiff that the purchaser corporation was worth millions of dollars and that plaintiff could rely upon their good credit. Furthermore, the evidence shows that plaintiff asked Anderson to obtain a financial statement on JCM, and, although Anderson agreed to obtain such statement, he failed to do so. In light of the duty of a real estate salesman and his broker to exercise reasonable skill and diligence on behalf of the principal they represent, we have previously held, and continue to hold, that the principal is justified in relying upon information received from the salesman and broker without making an independent investigation. [21] Not only did Anderson fail to obtain the requested financial statement on JCM, he represented to plaintiff, as indicated supra, that JCM was financially sound. Plaintiff was therefore justified in relying upon this representation without making an independent investigation on JCM's financial status. With respect to finding No. 27, the evidence shows that Anderson testified that UFA policy required that he use an attorney to close his sales. Furthermore, it was shown that on prior sales Anderson had prepared closing documents, just as he did here, and then had taken plaintiff to an attorney who finished the closings. Plaintiff testified that he expected this same procedure to occur in the present transaction, and that he asked Anderson for a closing statement on August 15, 1978. However, Anderson told plaintiff that a closing statement was not necessary and never did provide one to plaintiff, despite plaintiff's repeated requests. This evidence is substantial support for the trial court's finding No. 27. The judgment of the trial court is affirmed. Costs to plaintiff. STEWART, OAKS and DURHAM, JJ., concur.