Is a Judge a Fiduciary? The Authority 2:

Posted on: May 21, 2009 by: admin

Suspicion

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When I realized the judge had just used his official position to benefit himself I put together a motion for substitution of judge based on breach of fiduciary duty principles. Here is some more of the authority I incorporated into that motion:

8. A fiduciary may accept a benefit but the transaction must be beyond suspicion; and the burden is on the fiduciary to vindicate the benefit from any shadow of suspicion, and to show that it was perfectly fair and reasonable in every respect. Arnold v. Abernethy, 1957.CO.40172 <VL> ¶ 28-29; 307 P.2d 1106 (Colo. 1957). Courts will scrutinize the transaction with great severity. Id. In substance, one who endeavors to retain benefits received from another toward whom he stood in a position of trust has the burden of proof. Id. Use of corporate funds for personal benefit without repayment to the corporation constitutes a breach of fiduciary duty. Polk v. Land, 2000.CO.0042184 <VL>¶ 36; 5 P.3d 402 (Colo.App. 2000).

9. To discharge his fiduciary duty of good faith and loyalty, an agent must disclose all facts relative to the subject matter of his agency that may be material to the decision his principal is about to make. Wheeler v. Carl Rabe, Inc., 599 P.2d 902 (Colo. 1979). A failure to disclose can constitute a breach of fiduciary duty. Cole v. Jennings, 1992.CO.40162 <VL> ¶ 40; 847 P.2d 200 (Colo.App. 1992). A fiduciary’s obligations include a duty to deal impartially with beneficiaries, see Restatement (Second) of Trusts § 183 (1959).

10. A fiduciary owes a duty to refrain from intentional activity aimed at usurping an opportunity for his own benefit. See Whatley v. Wood, 366 P.2d 570 (Colo. 1961). Employment of individual resources to acquire assets for the fiduciaries own benefit defeating a corporations legitimate business plans and purposes constitutes a breach of fiduciary duty. Collie v. Becknell, 1988.CO.40411 <VL>¶ 32; 762 P.2d 727 (Colo.App. 1988). A person standing in a fiduciary relationship to a corporation will not be permitted to reap a benefit to the detriment of the corporation’s creditors. Continental Oil Co. v. Zaring, 1977.CO.40484 <VL>¶ 30;  563 P.2d 964 (Colo.App. 1977). If the fiduciary does purchase corporate assets, the fiduciary must account to those who have a right to demand it for the full value of the property so purchased. Id. A fiduciary may not keep for themselves more of a corporate asset than is necessary to pay the amount due them. Id. @ ¶ 31.


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