Marian I. Erdelyi v. Bradley T. Lott

Summary

The Wyoming Supreme Court considered claims for fraud and constructive fraud brought by Marian I. Erdelyi against her stockbroker, Bradley T. Lott, involving the transfer of jointly held investment accounts into a trust. The court held that the evidence did not support a finding that Erdelyi knew or should have known of the alleged fraud before the applicable limitations date. It reversed the judgment dismissing the action and remanded for a new trial.

Holdings

1. The evidence did not support a finding that Erdelyi knew or could have discovered Lott's fraud through the exercise of reasonable diligence before February 10, 2007. The district court therefore erred by dismissing the action as barred by the statute of limitations.
2. Comparative fault does not apply in this constructive-fraud action to compare negligence by the fraud victim with the perpetrator's willful or fraudulent conduct. The district court erred in giving comparative-fault instructions and requiring the verdict form to allocate fault to Erdelyi.
3. On remand, the jury should not be instructed on negligence as to Erdelyi or on comparative fault between Erdelyi and Lott in the constructive-fraud case.

Questions Presented

1. Whether the evidence supported the jury's finding that Erdelyi knew or could have discovered the fraud through due diligence before February 10, 2007, so that her fraud claims were barred by the statute of limitations.
2. Whether comparative-fault and negligence instructions improperly permitted the jury to compare Erdelyi's alleged negligence with Lott's constructive fraud.
3. Whether the verdict form improperly required the jury to allocate fault to Erdelyi in a constructive-fraud action.

Disposition

reversed_and_remanded