Thursday, February 14, 2019

Employment Supervisor Relationship Is Not a Fiduciary Relationship


Employment Supervisor Relationship Is Not a Fiduciary Relationship

      A recent decision from Colorado considered whether an employee’s relationship with her supervisor created a fiduciary relationship. It did not. Grays v. Granicus, LLC, Civ. Act. No. 18-CV-02271-CMA-NRN, 2018 WL 6788150 (D. Colo. Dec. 26, 2018).
      Grays was an employee of Granicus where she reported to Richey. Grays was terminated from employment, and brought this action alleging a variety of claims, including breach of fiduciary duty. Specifically, Grays alleged that Ritchey “was acting as a fiduciary of the Plaintiff, with respect to the Plaintiff’s position and employment at Granicus, LLC.” The court characterized this claim as “deficient.” 2018 WL 6788150, * 9. Specifically, the court found that:
Ms. Grays fails to allege that Ritchey was acting as Ms. Grays’ fiduciary. There is no allegation that a fiduciary relationship was established by law. Ritchey was merely Ms. Grays’ supervisor. This type of common supervisor/subordinate relationship is not one to create any type of “special trust for competence” between the parties. Ritchey was not tasked to act in Ms. Grays’ interest, nor did she exercise “substantial control” or exert “extensive influence over Ms. Grays.” Accordingly, Ms. Grays fails to state a breach of fiduciary duty claim against Defendant Ritchey, and this claim should be dismissed.

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