1997-04-29_GENERAL DOCUMENTS - C1981017

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36. Although PitIdn County's counsel, under an agreement of confidentiality, has been advised that the Trustee received in excess of $500,000.00 in sales proceeds from M&E,Pitkin County has not been advised as to what portion of the proceeds were generated from sales of property subject to Pitkin County taxes. 37. Upon information and belief Mid-Continent has sold personal property and improvements other than through its contact with M & E, and has failed to pay taxes from the proceeds of those sales as well. 38. An accounting from Defendants is necessary to determine the amount Mid-Continent should have paid Pitkin County from sales of property in accordance with the Plan. FOURTH CLAIM FOR RELIEF (Equitable Relief/Constructive Trust) 39. Pitkin County incorporates by this reference the allegations of paragraph 1-27 herein. 40. Pitkin County reasonably relied upon the Plan, and reasonably believed that sales of Mid-Continent's property through M & E would result in the best sales prices and the best result for all creditors of Mid-Continent, since M & E was in the salvage business and had the best access to all potential buyers of Mid-Continent's property. 41. Pitkin County reasonably relied upon and believed that the Trustee, even though an employee of Mid-Continent, would make distributions in accordance with the Plan as ordered by the Court. 42. The Trustee had a fiduciary duty to Pitkin County to make distributions to it in accordance with the Plan. 43. The Trustee breached his fiduciary duty to Pitkin County by failure to pay Pitkin County taxes in accordance with the Plan. 44. The Defendants are under a continuing obligation to distribute proceeds of sales of property of Mid-Continent in accordance with the Plan. 45. Pitkin County has been damaged by Mid-Continent's breach in an amount to be established at trial, representing the total proceeds realized by Mid- Continent from the sales of personal property and improvements previously located in Pitkin County and distributed to other creditors without first paying the outstanding amounts due to Pitkin County as required by the Plan. 46. Because the Trustee failed to pay real and personal property taxes from previous proceeds as required by the Plan, and because Pitkin County did not pursue other remedies in reliance upon the Plan,equity requires that the escrowed proceeds be used first to satisfy the personal property taxes due under schedule 4062. then be used to reduce the real property taxes due for improvements under schedule 7863.