On July 25, 2018, the Second Department issued a decision in Lake Overlook Partners, LLC v. Sosa, 2018 NY Slip Op. 05459, holding that a plaintiff was not entitled to an accounting where there was no fiduciary or confidential relationship, explaining: We also agree with the Supreme Court’s determination granting those branches of the defendant’s… Read more »
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Posts Categorized: Fiduciary Duties
Breach of Fiduciary Duty Claim Dismissed on Summary Judgment for Lack of Damages
On July 10, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Board of Directors of Windsor Owners Corp. v. Platt, 2018 NY Slip Op 31600(U), dismissing a breach of fiduciary duty claim on summary judgment for lack of damages, explaining: Damages is an essential element of breach of fiduciary… Read more »
Breach of Fiduciary Claim Reinstated; it Was Not Duplicative of Contract Claim Because it Sought Separate and Distinct Relief
On June 20, 2018, the Second Department issued a decision in Slocum Realty Corp. v. Schlesinger, 2018 NY Slip Op. 04587, holding that a breach of fiduciary claim was not duplicative of a breach of contract claim because it sought separate and distinct relief, explaining: The Supreme Court also erred in granting those branches of… Read more »
Sexual Harassment of Employees is Not a Breach of an Executive’s Fiduciary Duties to His Employer
On April 2, 2018, Justice Scarpulla of the New York County Commercial Division issued a decision in Pozner v. Fox Broadcasting Co., 2018 NY Slip Op. 30581(U), holding that an executive did not breach his fiduciary duty to his employer by sexually harassing employees, explaining: Fox’s breach of fiduciary duty counterclaim, however, is not tenable…. Read more »
Close Friendship Insufficient to Create Fiduciary Relationship
On March 29, 2018, the First Department issued a decision in Benzies v. Take-Two Interactive Software, Inc., 2018 NY Slip Op. 02242, holding that a close friendship was insufficient to create a fiduciary relationship, explaining: The breach of fiduciary duty claim is not viable because the complaint alleges only arm’s length business transactions and no… Read more »
Fiduciary Duty Claim Against Former Counsel Based on Conflict Timely Even Though Malpractice Claim Untimely
On December 28, 2017, the First Department issued a decision in Palmeri v. Willkie Farr & Gallagher LLP, 2017 NY Slip Op. 09252, holding that a breach of fiduciary duty claim against former counsel was timely based on a conflict even though the related malpractice claim was untimely, explaining: Plaintiff’s claim for legal malpractice, in… Read more »
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… Read more »
Breach of Contract May be Breach of Fiduciary Duty, But Only for Professionals
On October 19, 2017, the First Department issued a decision in Panattoni Development Co., Inc. v. Scout Fund 1-A, LP, 2017 NY Slip Op. 07334, holding that a breach of contract may also be a breach of fiduciary duty, but only in the case of professionals, explaining: If New York law applies, Scout relies on… Read more »
LLC Does Not Owe Fiduciary Duties to its Members
On September 28, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Brunetti v. Sergeev, 2017 NY Slip Op. 32054(U), dismissing breach of fiduciary duty claims against LLCs, explaining: The fiduciary duty claims asserted against Ginza 1, Ginza 2, and Ginza 3 are dismissed because an LLC does not owe… Read more »
First Department Reaffirms Indenture Trustee’s Fiduciary Duties
On August 1, 2017, the First Department issued a decision in Cece & Co. Ltd. v. U.S. Bank N.A., 2017 NY Slip Op. 05924, reaffirming that an indenture trustee cannot take advantage of trust beneficiaries for its own benefit, even if the indenture does not prohibit its actions. On the same day, the First Department… Read more »