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 »
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Posts Categorized: Fiduciary Duties
Accounting Claim Dismissed for Failure Adequately to Allege a Fiduciary Relationship
On July 16, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Karen’s Shipping, LLC v. West Side Foods, Inc., 2020 NY Slip Op. 32347(U), dismissing an accounting claim for failure adequately to allege a fiduciary relationship, explaining: To demonstrate entitlement to equitable accounting, a plaintiff must establish (i) the... Read more »
Allegations Insufficient to Show Existence of a Joint Venture
On July 22, 2020, the Second Department issued a decision in MacKay v. Paesano, 2020 NY Slip Op. 04155, holding that the plaintiff had failed adequately to allege the existence of a joint venture and, thus, of a fiduciary duty, explaining: The essential elements of a joint venture are an agreement manifesting the intent of... Read more »
Accountants Did Not Have Fiduciary Duty to Client
On June 18, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Deane v. Brodman, 2020 NY Slip Op. 31880(U), holding that accountants did not have a fiduciary duty to their client, explaining: To prevail on a cause of action for breach of fiduciary duty, a plaintiff must prove the... Read more »
To State a Conspiracy to Breach Fiduciary Duty Claim, All Alleged Conspirators Must Owe Fiduciary Duties
On May 8, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Sands Bros. Venture Capital II, LLC v. Metropolitan Paper Recycling, Inc., 2020 NY Slip Op. 50568(U), dismissing a claim for conspiracy to breach a fiduciary duty because not all the conspirators were alleged to have such duties, explaining:... Read more »
Breach of Fiduciary Duty Claims Timely Even Though Alleged Breach Merely Renewed Earlier, Time-Barred Breaches
On May 7, 2020, the First Department issued a decision in Ganzi v. Ganzi, 2020 NY Slip Op. 02740, holding that breach of fiduciary claims were timely even though the alleged breach merely renewed earlier, time-barred breaches, explaining: Breach of fiduciary duty is a tort claim that accrues when all the elements of the tort... Read more »
Fiduciary With Unfettered Discretion Cannot Exercise That Discretion in Bad Faith
On February 27, 2020, the First Department issued a decision in Shatz v. Chertok, 2020 NY Slip Op. 01383, holding that even a fiduciary with unfettered contractual discretion cannot exercise that discretion in bad faith, explaining: The motion court correctly declined to dismiss the breach of fiduciary duty cause of action. In Richbell Info. Servs.... Read more »
LLC’s Managing Members Owed Fiduciary Duties to Non-Managing Member
On January 3, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in Zunzurovski v. Bukefal LLC, 2020 NY Slip Op. 30264(U), holding that an LLC’s managing members had fiduciary duties to its non-managing member, explaining: To assert a claim for breach of fiduciary duty, a plaintiff must allege that (1)... Read more »
Open Repudiation Toll Doctrine Inapplicable to Claim for Money Damages for a Breach of Fiduciary Duty
On November 14, 2019, the First Department issued a decision in Matter of Yin Shin Leung Charitable Found. v. Seng, 2019 NY Slip Op. 08261, holding that the open repudiation toll doctrine was inapplicable to a claim for money damages for a breach of fiduciary duty, explaining: The breach of fiduciary duty claims are barred... Read more »
Singling Out Employee to Receive a Share of Profits Created a Fiduciary Relationship
On March 13, 2019, Judge Costello of the Hudson County Superior Court (Law Division) issued a decision in RCS Logistics, Inc. v. Expolanka USA LLC, Docket NO.: HUD-L-2668-17, holding that singling out one employee to receive a share of profits created a special relationship creating a fiduciary duty, explaining: Shareholders cannot sue for injuries arising... Read more »