Paletta v. Mercantile Bank, N.A.

PUDLOWSKI, Judge.

This is an appeal from a judgment in favor of two investors who were constructively defrauded of their investments by a friend who had invested and managed their savings for them. The original agreement was oral. The trial court found: the Statute of Frauds does not apply to this action because of the investor’s confidential relationship with their friend as their money manager, the investors had originally invested $106,000.00, the proceeds of this investment were channelled into a third party’s bank account in violation of the fiduciary duties owed to the investors, and…