No specific laws identified for this ruling.
Appellate court reversed trial court's dismissal of negligent hiring and breach of fiduciary duty claims against financial planning company, finding allegations sufficient that company could have discovered unfitness of employee who misappropriated customer funds, but affirmed dismissal of constructive fraud claim.
1. Employer and Employee — negligent hiring — reasonable investigation The trial court erred by granting defendant financial planning company's motion to dismiss plaintiff customer's claim for negligent hiring of plaintiff's son, an insurance agent who misappropriated funds from plaintiff's various insurance and annuity products, because the allegations were sufficient to assert that defendant company could have discovered the unfitness of plaintiff's son had it conducted a reasonable investigation prior to hiring him. 2. Fiduciary Relationship — breach of fiduciary duty — insurance agent The trial court erred by granting defendant financial planning company's motion to dismiss plaintiff customer's claim for breach of fiduciary duty regarding plaintiff's son who misappropriated funds from plaintiff's various insurance and annuity products while employed as an insurance agent of defendant company, because: (1) the complaint sufficiently alleged that a relationship of confidence and trust existed between plaintiff and plaintiff's son, individually and in his capacity as an employee and agent of defendant company; (2) plaintiff was not required to allege wrongful benefit as an element of this claim since it is an element of constructive fraud; and (3) plaintiff sufficiently alleged that he relied upon false representations of the status of his investment accounts provided by his son in his capacity as an employee and agent of defendant company and that plaintiff's son in carrying out his duties as an agent and employee of defendant company converted plaintiff's funds to his own use. 3. Fraud — constructive — motion to dismiss — sufficiency of evidence The trial court did not err by granting defendant financial planning company's motion to dismiss plaintiff customer's claim for constructive fraud, because:
This summary was generated to explain the ruling in plain English and is not legal advice.
unemployment benefits; discharge; voluntary departure; misconduct; benefit eligibility.
second opinion evaluation, temporary partial disability, wage records
NCWHA, UDTP, severance payment, non-compete payment
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