On June 24, 2021, the First Department issued a decision in Besen v. Farhadian, 2021 NY Slip Op. 04080, dismissing a breach of fiduciary duty claim for lack of damages, explaining: To state a claim for breach of fiduciary duty, plaintiffs must allege that (1) defendant owed them a fiduciary duty, (2) defendant committed misconduct,... Read more »
Blogs
Posts Categorized: Fiduciary Duties
Questions of Fact Preclude Dismissal of Claims Against Indenture Trustee, Rejecting Argument That its Duties Were Merely Ministerial
On April 20, 2021, the First Department issued a decision in Bankers Conseco Life Ins. Co. v. Wilmington Trust, N.A., 2021 NY Slip Op. 02355, holding that questions of fact precluded dismissal of claims against an indenture trustee, rejecting the argument that the trustee’s duties were merely ministerial, explaining: Wilmington moved to dismiss the complaint,... Read more »
Statute of Limitations for Breach of Fiduciary Duty Claim Based on Fraud is Six Years, Not Three
On March 25, 2021, the First Department issued a decision in Wimbledon Fin. Master Fund, Ltd. v. Hallac, 2021 NY Slip Op. 01881, holding that the statute of limitations for a breach of fiduciary duty claim based on fraud was six years, explaining: The first and second causes of action — for aiding and abetting... Read more »
Conflict Claims Insufficient for Derivative Claim to Survive
On December 23, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Bezio v. General Elec. Co., 2020 NY Slip Op. 34299(U), holding that conflict of interest claims against a trustee were insufficient to withstand a motion to dismiss, explaining: The full facts of this matter are set forth in... Read more »
Breach of Fiduciary Duty Claim Must Be Dismissed Where Duplicative of Breach of Contract Claim
On December 2, 2020, Justice Platkin of the Albany County Commercial Division issued a decision in Rockmore v. Plastic Surgery Assoc., LLP, 2020 NY Slip Op. 51461(U), dismissing a breach of fiduciary duty claim as duplicative of a breach of contract claim because it was based on the breach of contractual. In Rockmore, Defendants were... Read more »
Breach of Fiduciary Claim Dismissed as Duplicative of Contract Claim Because it Was Based on Breach of Duties Assigned by Contract
On December 2, 2020, Justice Platkin of the Albany County Commercial Division issued a decision in Rockmore v. Plastic Surgery Assoc., LLP, 2020 NY Slip Op. 51461(U), dismissing a breach of fiduciary duty claim as duplicative of a breach of contract claim because it was based on the breach of duties set by contract, explaining:... Read more »
Allegations That Directors Were Acquainted With Interested Party Insufficient Basis for Claim That They Were Not Disinterested
On December 03, 2020, the First Department issued a decision in Matter of Cadus Corp. Stockholders Litig., 2020 NY Slip Op. 07279, holding that the fact that directors were acquainted with an interested party was an insufficient basis for a claim that they were not independent, explaining: The motion court properly applied the business judgment... Read more »
Court Enforces Disclaimer of Fiduciary Duty
On October 20, 2020, the First Department issued a decision in La Scoula D’Italia Guglielmo Marconi v. Gates Capital Corp., 2020 NY Slip Op. 05859, enforcing a disclaimer of fiduciary duty, explaining: Here, the documents conclusively establish that defendants acted as placement agent to plaintiff and not, as plaintiff now contends, also as a financial... Read more »
Fiduciary Duty Claims Based on Joint Venture Fail Without Provision Providing for Sharing Losses as Well as Profits
On October 1, 2020, the First Department issued a decision in Shionogi Inc. v. Andrx Labs, LLC, 2020 NY Slip Op. 05308, holding that breach of fiduciary duty claims based on an alleged joint venture fail without allegations of an agreement to share losses as well as profits, explaining: Plaintiff failed to point to cognizable... Read more »
A Claim for an Accounting May be Made Whenever a Fiduciary Relationship Exists
On August 20, 2020, Justice Masley of the New York County Commercial Division issued a decision in Storper v. WL Ross & Co., LLC, 2020 NY Slip Op. 32742(U), holding that a claim for an accounting may be made whenever a fiduciary relationship exists, explaining: The right to an accounting is premised upon the existence... Read more »