Tuesday, May 15, 2007
Ind. Decisions - Supreme Court grants transfer to one case today
The Indiana Supreme Court has today granted transfer in the case of Porter County Development Corporation v. Citibank (South Dakota), N.A. Here is a link to the 10/18/06 CA opinion by Judge Friedlander. The opinion concluded:
A plaintiff alleging the existence of constructive fraud has the burden of proving the existence of a duty owing to it by the party to be charged due to their relationship, and the gaining of an advantage by the party to be charged with fraud. This duty may arise in one of two ways: (1) by virtue of the existence of a fiduciary relationship; or (2) in the case where there is a buyer and a seller, where one party may possess knowledge not possessed by the other and may thereby enjoy a position of superiority over the other. Id. In the instant case, none of the conditions giving rise to a constructive trust are present. PCDC concedes Citibank obtained the funds from Vincent in good faith and without knowledge of Vincent’s misappropriation. Further, nothing in the record indicates the existence of a relationship between PCDC and Citibank, much less that of a fiduciary. We decline, therefore, to impose upon Citibank a constructive trust in favor of PCDC. Judgment affirmed.
Posted by Marcia Oddi on May 15, 2007 02:55 PM
Posted to Indiana Transfer Lists