BAKER v. STEWART TITLE & TRUST OF PHOENIX

No. 1 CA-CV 99-0211.

5 P.3d 249 (2000)

197 Ariz. 535

L. Kenneth BAKER, on Behalf of HALL BRAKE SUPPLY, INC., Employee Profit Sharing Plan; Richard Bertocchi as Trustee of Regal Lighting Fixture Co., Inc. Profit Sharing Plan; Susan W. Boyes and William J. Boyes, wife and husband; Profit Sharing Plan of Carmen H. Brooks, M.D., P.C.; James E. Campbell a Trustee of James E. Campbell, M.D., P.C. Profit Sharing Plan and Trust; A. Leroy Ellison as Trustee of the Allen Leroy Ellison Family Trust; W. Lee Fanning M.D., Ltd., Pension Plan; Murray E. Goodman, as Trustee of Goodmans Inc. Defined Benefit Pension Plan; Harry W. Hale, Jr., M.D. as Trustee of the Hale Family Trust; Richard L. Henderson and Barbara A. Henderson, husband and wife; Lawrence Koep as Trustee of the Erik Kenneth Koep Trust; Robert E. Leber, M.D. as Trustee of the Robert E. Leber, M.D., P.C. Profit Sharing Plan; W. Steven Leeper, M.D. as Trustee of the W. Steven Leeper, M.D., P.C. Profit Sharing Plan; Alan H. Manas, M.D. as Trustee of the Sun City Eye Consultants, Ltd. Employee DBPP; Vicente G. Mortel, M.D. as Trustee of the Vicente Mortel, M.D., Ltd. Profit Sharing Plan; Guarantee and Trust Company, as Trustee for the Benefit of Walter J. Nieri, M.D., IRA Rollover, and Geraldine McGartland, former spouse of Walter J. Nieri, M.D.; NMM Limited Partnership; Richard T. Perry, M.D. as Trustee of Richard T. Perry, M.D., P.C., FACS; Dr. Charles M. Rucker as Trustee of the Arizona Heart and Lung Surgeons, Ltd. Retirement Plan; Alfred D. Sachs and Frances T. Sachs as Trustees of the Sachs Family Trust; Howard M. Segal; Southwest Medical Specialist, P.C. Amended and Restated Employee Pension Plan and Trust, including one-half interest currently held by Jerome G. Bickel, Smith Barney Shearson, IRA R/O Custodian; Robert H. Tamis, M.D. as Trustee of Robert H. Tamis, M.D., P.C. Employee Pension Plan; Ian A.D. Todd; David R. Towar as President and Trustee of Phoenix Dog & Cat Hospital Pension Plan; Ben A. Vanderwerf, M.D. as Trustee for Phoenix Transplant and Vascular Surgery Employee's Pension Plan; Fred Yerger, M.D., Paul Wasserman, M.D., W. Lee Fanning, M.D. and Steven Dippe, M.D., Officers of the Scottsdale Medical Specialists Ltd. Defined Benefit Pension Plan; Arizona Chest Physicians Employees' Pension Plan; ArMA Membership Benefits, Inc., IRA Custodian FBO William E. Dozer, M.D., IRA Rollover; L. Kenneth Baker, on Behalf of Hall Brake Supply Inc. Employee Profit Sharing Plan; Richard Besserman, Smith Barney Shearson, IRA R/O Custodial (Richard and Rosalie Besserman); Dale Block and Marshall B. Block; H.H. Buchman, II, M.D.; James H. Carlisle, M.D. as Trustee of James H. Carlisle, M.D., F.A.C.S., P.C. Employees' Pension Plan; Mark R. Cohen, M.D. as President of Mark R. Cohen, M.D., P.C.; David J. Crosby, M.D. and Eleanor Crosby as Trustees of D & E Investment Co.; Beverly E. Flentje; Estate of Dorothy A. Fox; Randall J. Fox; Ronald S. Garlikov, M.D. and Reda S. Garlikov, husband and wife; Ronald S. Garlikov, M.D. as Trustee of Southwest Eye Surgeons Profit Sharing Plan and Trust; David Goldfarb, M.D. as Trustee of David Goldfarb, M.D., P.C. Profit Sharing Plan; David Goldfarb, M.D. and Joan Goldfarb, husband and wife; Albert Hahn and James Cooley as Trustees of Cohaco Building Specialists, Inc. Money Purchase Pension Plan and Trust; Douglas Hilton; Robert E. Leber, M.D. as Trustee of the Robert E. Leber, M.D., P.C. Profit Sharing Plan; Lewis Equipment Profit Sharing Plan & Retirement Trust; Robert S. Lewis, M.D. as President of Ophthalmic Surgeons & Physicians Ltd. Pension Plan; John MacLeod Diversified, Inc. Employees Pension Plan; Stanley J. Marks; Max Minuck, M.D., individually, and as Trustee and Representative of the Estate of Estelle Minuck; John A. Pifer; William J. Salomon and Saundra E. Salomon, husband and wife; Howard M. Segal (aka Howard Segel); Jane Siegel; Allan B. Starr; Peter Thomas, M.D. as Trustee of Thomas Laser Centers Medical Group Ltd. Profit Sharing Plan; Ben A. Vanderwerf, M.D. as Trustee for Phoenix Transplant and Vascular Surgery Employee's Pension Plan; Quail Run Airpark Limited Partnership; Ox Bow Airpark Limited Partnership; Chaparral Airpark Limited Partnership; Kachina Airpark Limited Partnership; North Black Canyon Properties I Limited Partnership; Cactus View Properties Limited Partnership; Palo Verde Valley II Limited Partnership; Pinnacle Peak Properties Limited Partnership, Plaintiffs-Appellants, v. STEWART TITLE & TRUST OF PHOENIX, INC., Defendant-Appellee.

Court of Appeals of Arizona, Division 1, Department E.

May 2, 2000.


Attorney(s) appearing for the Case

Bonnett, Fairbourn, Friedman & Balint, PC by Andrew S. Friedman and Wendy J. Harrison, Phoenix, Attorneys for Plaintiffs-Appellants.

Howard & Rouse, PC by Gary F. Howard, Phoenix, Attorneys for Defendant-Appellee.


OPINION

GERBER, Judge.

¶ 1 In September, 1994, about 80 investors filed a complaint against multiple defendants alleging negligence, breach of fiduciary duty, common law fraud, securities fraud, consumer fraud, constructive fraud and violation of RICO statutes. The plaintiffs ("plaintiffs" or "appellants") obtained a judgment of $8,638,044 against Ben Friedman ("Friedman"), the main organizer and promoter of the scheme. Other defendants included his...

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