Winkler v. Rocky Mountain Conference of United Methodist Church

• Decision Date: 09 November 1995
• Docket Number: Nos. 94CA0652,94CA0661,s. 94CA0652
• Parties: Dianne R. WINKLER, Plaintiff-Appellee, v. ROCKY MOUNTAIN CONFERENCE OF the UNITED METHODIST CHURCH, a Colorado non-profit corporation, and Glenn Chambers, Defendants-Appellants. . V
• Court: Colorado Court of Appeals

Page 152

923 P.2d 152

Dianne R. WINKLER, Plaintiff-Appellee, v. ROCKY MOUNTAIN CONFERENCE OF the UNITED METHODIST CHURCH, a

Colorado non-profit corporation, and Glenn

Chambers, Defendants-Appellants.

Colorado Court of Appeals,

Div. V.

Nos. 94CA0652, 94CA0661.

Nov. 9, 1995.

As Modified on Denial of Rehearing

Jan. 18, 1996.

Certiorari Denied Sept. 3, 1996.

Holland, Seelen & Pagliuca, Brian K. Holland, Joyce A. Seelen, Denver, for Plaintiff-Appellee.

Quigley & Bruce, Neil Quigley, Bruce A. Logan, Denver, for Defendant-Appellant Rocky Mountain Conference of the United Methodist Church.

Keller, Wahlberg & Morrato, P.C., James J. Morrato, Denver, for Defendant-Appellant Glenn Chambers.

Opinion by Judge ROY.

In this consolidated appeal, defendants, Glenn Chambers and Rocky Mountain Conference of the United Methodist Church (Conference), appeal from the judgment entered on jury verdicts in favor of plaintiff, Dianne R. Winkler, based on claims that Chambers and the Conference breached their fiduciary duty to Winkler, that the Conference negligently hired or supervised Chambers, and that Chambers engaged in extreme and outrageous conduct. The Conference also appeals the trial court's awards of costs to Winkler. We affirm in part and reverse in part.

Chambers served as senior pastor to Grace United Methodist Church by appointment from the Conference from 1979 until he was suspended in April 1992 because of allegations of misconduct. Throughout his employment, Chambers had an alcohol problem dating to 1972 of which the Conference was aware well prior to 1992.

In 1980, the Conference was informed of an incident concerning Chambers attributable to the abuse of alcohol. In 1986, a woman associate pastor of Grace Church told a District Superintendent for the Conference that Chambers had inappropriately touched her, but requested no further action as she "would take care of it." In October 1991, a parishioner reported to a Conference pastor alleging inappropriate conduct by Chambers, but did not file a formal complaint. At trial, this parishioner testified that she told the Conference that she did not like the way Chambers spoke to her and the fact that "he always seemed to be around" her when she was at church.

Winkler joined Grace Church in 1988 and thereafter began to volunteer her services for a variety of activities including the remodeling of a classroom. Winkler engaged in the volunteer activities, in part, on the recommendation of her therapist to work in a "safe" environment to overcome her fears of the workplace. Winkler's volunteer work caused her to be in contact with Chambers during the off hours. It was this contact with Chambers that led to her lawsuit.

While Winkler testified as to other incidents of improper conduct by Chambers, three incidents set forth the context upon which her claims were based:

(1) Winkler testified that, in August 1990, as she was remodeling a classroom, Chambers approached her, and after some initial conversation he put his arm around her, caressed her back, and told her: "You are really beautiful." He then started stroking her hair and said, "I love you, Dianne; you mean so much to me." After he left, Winkler stated that she felt physically ill, held herself tightly, and cried.

(2) A few days following the first incident, Winkler went to discuss a matter with Chambers in his office. They sat next to each other on a small couch, and he stroked her leg on the inside of her thigh and expressed his love for her. Winkler stated that she tried to ignore his touch and left the room as soon as he answered her question.

(3) In January 1992, Winkler was in a storeroom when Chambers entered the room. He came up to her, put his hand on the left side of her body, and rubbed his body up and down on her right side. He also bumped her and moved his hands up to the side of her breast and told her he "really loved her" and "did she hear what he was saying." Shortly thereafter, when she left the storeroom and told two women she met that she was "sick of" Chambers touching her, one responded, "Oh my God, not you too."

In March 1992, a formal inquiry into Chambers' inappropriate conduct with women began when another woman parishioner filed a formal complaint with church authorities. In partial response to this formal complaint, a Conference pastor held a meeting on April 24, 1992, at her home. This Conference pastor was the same individual who had received the 1991 report. Just prior to the meeting, the Conference suspended Chambers for three months.

Six women, including Winkler, attended the meeting. Winkler testified that the other women described instances of unwanted verbal comments and physical contact. Winkler further stated that all of the women were asked to file written complaints detailing their experiences with Chambers.

Winkler filed suit against Chambers, Grace Church, and the Conference on January 22, 1993, alleging breach of fiduciary duty and outrageous conduct against Chambers; breach of fiduciary duty, negligent hiring or supervision, and outrageous conduct against both Grace Church and the Conference; and vicarious liability by ratification against Grace Church. Winkler also sought punitive damages against all three defendants.

Chambers admitted that he had a long-term problem with alcohol. He stated that he did not remember most of the incidents about which Winkler and the others testified and that it was his general demeanor to be open and affectionate with members of the congregation both verbally and physically. As to those incidents he did remember, he stated that any verbal comments were misunderstood and that the physical contact was incidental.

Prior to trial, Grace Church settled all claims with Winkler for $23,500, and it was dismissed from the proceedings pursuant to stipulation.

After a twelve-day trial, the jury returned special verdicts in favor of Winkler against Chambers on the breach of fiduciary duty claim totaling $28,675, and on the outrageous conduct claim in the amount of $28,675. The jury also returned special verdicts in favor of Winkler and against the Conference on the claim for negligent hiring and supervision totaling $95,853, and on the breach of fiduciary duty claim in the amount of $10,651. The trial court awarded costs of $2,918.58 against the Conference based on an offer of settlement [judgment] made pursuant to § 13-17-202, C.R.S. (1995 Cum.Supp.), and awarded costs of $13,067.96 against both Chambers and the Conference jointly and severally pursuant to § 13-16-104, C.R.S. (1987 Repl.Vol. 6A).

I.

Initially, we address and reject the Conference's contention that the Establishment Clause of the First Amendment bars Winkler's claims against it.

The Conference contends that the "Book of Discipline," which governs the manner of ordaining ministers, their election to membership in the Conference, the responsibilities of membership in the Conference, and the manner of discipline and removal, embodies religious beliefs that are protected. Thus, it argues, its handling of the Chambers matter and its processing of the complaints against him are protected under the First Amendment. The Conference further argues that the jury's consideration of Chambers' history with the Conference under theories of negligent hiring or supervision infringes upon protected beliefs.

In both Destefano v. Grabrian, 763 P.2d 275 (Colo.1988) and Moses v. Diocese of Colorado, 863 P.2d 310 (Colo.1993), cert. denied, 511 U.S. 1137, 114 S.Ct. 2153, 128 L.Ed.2d 880 (1994), our supreme court held that claims of breach of fiduciary duty, negligent hiring or supervision, and vicarious liability in civil actions against clergy members and their supervisors are viable if they are supported by competent evidence in the record. Notwithstanding the Conference's assertions that those cases were wrongly decided, they are controlling precedent dispositive of the Conference's arguments. See also DeBose v. Bear Valley Church of Christ, 890 P.2d 214 (Colo.App.1994) (cert. granted June 19, 1995).

Furthermore, we note that neither Chambers nor the Conference contend that Chambers' method of communicating with parishioners by touching, hugging, and expressing affection was based on any religious tenet or belief. Cf. DeBose v. Bear Valley Church of Christ, supra. Therefore, we conclude that the trial court properly rejected the Conference's defense based on the First Amendment.

II.

Next, the Conference and Chambers each contend that there was insufficient evidence of a fiduciary relationship with Winkler to create liability. We disagree.

The existence of a fiduciary relationship is a prerequisite to a finding of a fiduciary duty. A fiduciary relationship may arise when one person occupies a superior position relative to another. See Moses v. Diocese of Colorado, supra; Restatement (Second) of Torts § 874 (1979).

A fiduciary is a person having a duty, created by his or her undertaking, to act primarily for the benefit of another in matters connected with the undertaking. A fiduciary's obligations include a duty of loyalty, a duty to exercise reasonable care and skill, and a duty to deal impartially with beneficiaries. Destefano v. Grabrian, supra.

Fiduciary liability requires not only a repose of trust, but an assumption of a duty and a breach of that duty. Whether a fiduciary relationship exists is a question of fact to be resolved by the jury. Moses v. Diocese of Colorado, supra.

Winkler asserts that Chambers entered into a fiduciary relationship with her by counseling her on personal matters. She testified that the counseling sessions frequently took place on an informal basis and that during these sessions they discussed numerous intimate matters involving herself and her family. She further argues that Chambers breached his fiduciary duties to her by his conduct.

Chambers argues that the evidence does not support the proposition that there was any counseling...