Breach of Fiduciary Duty – Court Error

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Civil

WI Court of Appeals – District III

Officials: Stark, P.J., Hruz, J., and Thomas Cane, Reserve Judge

Breach of Fiduciary Duty – Court Error

2014AP2246 White Knight Commercial Funding, LLC v. Michael G. Trewin

Michael Trewin appeals a judgment granting Darryel and Mary Hearley rescission of a 2005 conveyance of real property to Trewin based on Trewin’s breach of his fiduciary duties as the Hearleys’ attorney. We agree with Trewin that the circuit court erred when it determined the applicable statute of limitations for the Hearleys’ claim was WIS. STAT. § 893.33, which establishes a thirty-year limitations period for actions affecting real property. The substance of the Hearleys’ allegations was that Trewin breached his fiduciary duties; accordingly, we conclude WIS. STAT. § 893.57 is the applicable statute of limitations, which establishes either a two- or three-year limitations period for intentional torts. We therefore reverse the judgment, but we remand to the circuit court to determine whether the applicable limitations period—whether two or three years—has not yet expired, or should not be enforced, by virtue of the discovery rule, the continuing violation theory, or equitable estoppel. The judgment also dismissed Trewin’s counterclaims for eviction and replevin and awarded the Hearleys their reasonable attorney’s fees. Trewin asserts both of these aspects of the judgment were erroneous. We affirm the dismissal of Trewin’s counterclaim for replevin, but reverse the dismissal of Trewin’s counterclaim for eviction and remand for further proceedings. We also reverse the circuit court’s award of attorney’s fees.

Decision

Affirmed in part, reversed in part

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.