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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: November 7, 2017

Fiduciary Duty Claim Dismissed as Duplicative of Contract Claim

On November 2, 2017, the First Department issued a decision in Elmrock Opportunity Master Fund I, L.P. v. Citicorp North America, Inc., 2017 NY Slip Op. 07678, affirming the dismissal of breach of fiduciary claims as duplicative of breach of contract claims, explaining:

As to Citicorp the fiduciary duty claim was correctly dismissed as duplicative of the contract claim.

On appeal, plaintiff argues that its cause of action against defendant ESSL 2, Inc. for breach of fiduciary duty cannot be duplicative of its contract claim against Citicorp. However, the complaint shows that the fiduciary duty claim is pleaded against all three defendants, not ESSL alone. In addition, the fiduciary duty claim alleges, “Under the Option Purchase and Sale Agreements, Citi i.e., defendants, had a fiduciary duty to plaintiff.

(Internal quotations and citations omitted).

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