Six-Year Statute of Limitations Applies to Breach of Fiduciary Duty Claim Based on Fraud

On February 1, 2024, the First Department issued a decision in Board of Mgrs. of the 443 Greenwich St. Condominium v. SGN 443 Greenwich St. Owner LLC, 2024 NY Slip Op. 00450, holding that the six-year statute of limitations applies to a breach of fiduciary claim based on fraud, explaining:

Contrary to defendants’ position, the cause of action is not time-barred under the circumstances of this case. A cause of action for breach of fiduciary duty based on allegations of actual fraud is subject to a six-year limitations period, except where the fraud allegation is only incidental to the claim asserted. According to the allegations in the complaint, the sponsor’s principals’ actions in concealing renovation charges in common charge assessments is not incidental to the cause of action pleaded, but rather underpins it, because plaintiff alleges that the sponsor’s principals fraudulently used common charges to pay for the building renovation and concealed their actions by disguising the payments as relating to maintenance and repairs. Thus, the cause of action is subject to a six-year limitations period.

(Internal citations omitted).

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