Graphic Directions, Inc. v. Bush

862 P.2d 1020 (1993)

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Nature of the Case

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Facts

P was started in 1975 by Grant and Oli Duncan, a husband and wife team. Bush (D) became a shareholder, vice-president, and marketing director in 1983. Dickerson (D) was hired as a free-lance artist in 1985. Upon the death of Grant Duncan in 1988, Oli Duncan continued operating the business, Bush (D) retained his position, and Dickerson (D) was appointed to the position of art director. Dissatisfied with management decisions made by Oli Duncan after her husband's death, Bush (D) made preparations to start his own business. He discussed his plans with Dickerson (D) and another P employee, Roche, but not with Oli. On April 17, 1989, the three employees resigned from P and immediately began operation of Concepts 3, a competing graphics business. P filed a complaint and Ds counterclaimed alleging defamation. The jury returned a verdict in favor of P against Bush (D) in the amount of $91,400 for breach of fiduciary duty, $2.50 for conversion, and $1,056.30 on the diversion of corporate opportunity claim, and assessed exemplary damages in the amount of $30,000. It found in favor of P on Bush's (D) counterclaim for defamation. The jury awarded P $26,733 on the breach of fiduciary duty claim against Dickerson (D) and assessed exemplary damages in the amount of $5,000. The verdict was in favor of P on the defamation counterclaim. The jury found awarded nominal damages of $1 to Roche (D). Ds now appeal the judgment on the claim for breach of fiduciary duty, contending that the court erred in submitting it to the jury.