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Raymond H. Riley Associates, Inc. v. Richard P. Roche

Citations: 51 F.3d 286; 1995 U.S. App. LEXIS 18327; 1995 WL 146132Docket: 94-1389

Court: Court of Appeals for the Tenth Circuit; April 4, 1995; Federal Appellate Court

Narrative Opinion Summary

In the case of Raymond H. Riley Associates, Inc. v. Richard P. Roche, the Tenth Circuit Court of Appeals addressed an employment dispute involving allegations of breach of contract and duty of loyalty. Roche challenged the district court's factual findings, damage calculations, and denial of his claim for unused vacation pay. The appellate court applied the 'clearly erroneous' standard to the district court's factual determinations, finding them supported by the record. The court upheld the damage calculations, which were based on lost profits due to Roche's contractual breach, in accordance with Colorado law. Furthermore, the court affirmed the requirement for Roche to disgorge profits obtained during his breach of duty of loyalty, as his interference with the original contract was substantiated. Punitive damages were also upheld, given Roche's willful and wanton conduct. His claim for unused vacation pay was denied, consistent with Colorado law, as he was in breach at termination. The judgment was affirmed in its entirety, and the matter was remanded for the calculation of attorneys' fees. The decision, while not establishing binding precedent, highlights the interpretation and application of Colorado law regarding employment disputes and contractual obligations.

Legal Issues Addressed

Clearly Erroneous Standard

Application: The appellate court reviewed the district court's factual findings under the 'clearly erroneous' standard and found them well-supported.

Reasoning: The court reviewed the factual findings under the 'clearly erroneous' standard, concluding that the district court's findings were well-supported by the record.

Damage Calculations in Breach of Contract

Application: The court affirmed the district court's damage calculations based on lost profits due to Roche's breach of contract as consistent with Colorado law.

Reasoning: The court validated the district court's damage calculations, which were based on the profits lost by RHRA due to a breach of contract by BOSC, aligning with Colorado law regarding damage assessments for tortious interference.

Disgorgement for Breach of Duty of Loyalty

Application: Roche was required to disgorge profits earned during his breach of duty of loyalty to RHRA, as his earnings were linked to interference with the contract.

Reasoning: The trial court's decision requiring Roche to disgorge profits due to his breach of duty of loyalty to RHRA is affirmed, citing precedents that mandate full disgorgement of compensation received during the period of breach.

Forfeiture of Unused Vacation Pay

Application: Roche's claim for unused vacation pay was rejected because the right accrues at termination, and he was in breach at that time.

Reasoning: Roche's claim for repayment of one unused vacation day is rejected based on Colorado law, which states that the right to payment accrues at termination, and Roche was in breach at that time.

Punitive Damages for Willful and Wanton Conduct

Application: The court upheld punitive damages awarded to RHRA as Roche's conduct was willful and wanton, supported by the district court's findings.

Reasoning: The court also upholds the punitive damages awarded, as the plaintiff demonstrated willful and wanton conduct, supported by the district court's factual findings.

Use of Unpublished Opinions

Application: Unpublished opinions may be cited for their persuasive value if a copy is provided to the court and parties.

Reasoning: Unpublished opinions may now be cited if they hold persuasive value on a material issue, provided a copy is attached or furnished to the court and parties, as per the General Order dated November 29, 1993.