Commercial Division Blog
Where There is a Fiduciary Relationship, the Beneficiary Has a Right to an Accounting
On September 26, 2018, the Second Department issued a decision in Webster v. Forest Hills Care Ctr., LLC, 2018 NY Slip Op. 06289, holding that where there is a fiduciary relationship, the beneficiary has a right to an accounting, explaining:
The Supreme Court should have denied that branch of the defendants' motion which was pursuant to CPLR 3211(a)(7) to dismiss the causes of action for an accounting. Generally, to be entitled to an equitable accounting, a plaintiff must demonstrate that he or she has no adequate remedy at law. However, where, as here, there is a fiduciary relationship between the parties, there is an absolute right to an accounting notwithstanding the existence of an adequate remedy at law.
(Internal citations omitted).
Fiduciaries have special duties, one of which is the obligation to account for assets they control for their beneficiaries. We both bring and defend breach of fiduciary duty and professional malpractice claims and other claims relating to the duties of trustees and professionals such as lawyers, accountants and architects to their clients. Contact Schlam Stone & Dolan partner John Lundin at email@example.com if you or a client have questions regarding such claims or appeals of such claims.