Utah Attorneys Prevail on Appeal in Breach of Fiduciary Duty Suit

Salt Lake City Partners Thomas J. Rollins and Vincent J. Velardo recently obtained affirmance on appeal in the Utah Court of Appeals on behalf of our consulting firm client in a case involving alleged breach of fiduciary duty.

In this lawsuit, Plaintiffs, an individual and their related business entity, claimed that our accounting firm client committed or aided and abetted fraud during the sale of two commercial buildings purchased by Plaintiffs. Our client denied Plaintiffs’ allegations, as without any factual basis. In January 2023, the Third District Court of Salt Lake County granted our attorneys’ Motion for Summary Judgment based on the Economic Loss Rule, the contract between our client and Plaintiff, and the applicable statute of limitations. Later, Tom Rollins and Vince Velardo filed a motion for court costs and attorneys’ fees with the Third District Court of Salt Lake County, and the court agreed and entered a judgment in favor of our client.

Later in 2023, Plaintiff appealed the district court’s ruling to dismiss the breach of fiduciary duty summary judgment ruling that was in our favor to the Utah Court of Appeals. While Plaintiff filed multiple claims against our client that were all previously dismissed, their appeal primarily argues that the breach of fiduciary duty claims are barred by both the economic loss rule and the three-year statute of limitations detailed in Section 78B-2-305(3) of the Utah Code.

In September 2024, the appellate court affirmed the district court’s dismissal of Plaintiffs’ fiduciary duty claims.

Tom Rollins defends entities and individuals in professional malpractice, construction defect and personal injury cases. He has experience presenting oral arguments before the Utah State Court of Appeals, and as second chair in state and federal jury trials.

Vince Velardo handles professional liability, employment liability, construction and environmental/toxic torts matters. He also handles insurance coverage involving first-party property, third-party liability and bad faith claims, as well as contract litigation and unfair competition.