Background: Sase Aggregate Ltd. discovered its pit manager, Jamie Showers, defrauded the company of over $2.1 million. Sase sought to recover these funds from Showers' wife, Michelle Langdon, alleging the funds were used to purchase and renovate her property.
Key Points:
- Lower Court Decision: The application judge ruled in favor of Langdon, finding no sufficient evidence of her knowledge or involvement in the fraud, except for $177,632.38 she admitted.
- Sase's Claims: Sase sought a constructive trust over the property proceeds, alleging knowing receipt, knowing assistance, and unjust enrichment.
Appeal Findings:
- Constructive Trust and Fiduciary Duty: The court agreed a fiduciary duty must be established for knowing receipt and assistance, but not for unjust enrichment.
- Insufficient Evidence: The court acknowledged Showers' fiduciary duty but upheld the application judge's decision due to insufficient proof of Langdon’s involvement or benefit from the fraud.
- Tracing Funds: Sase failed to properly trace the stolen funds directly to the property payments.
- Knowledge and Benefit: The court affirmed Langdon did not knowingly receive or benefit from the fraudulently obtained funds, except for the admitted amount.
Conclusion:
- Appeal Dismissed: The court found no errors in the application judge’s decision, and Langdon was awarded costs. There was no total monetary award specified.
