Bank Does Not Have a Fiduciary Duty to its Customer

On May 14, 2024, Justice Bannon of the New York County Commercial Division issued a decision in Spectrum Inc. Gen. Contr. v. Capital One Bank USA, N.A., 2024 NY Slip Op. 31814(U), holding that a bank did not have a fiduciary duty to its customer, explaining:

The legal relationship between a customer and a bank is ordinarily contractual in nature and does not create a fiduciary relationship unless, the plaintiff sufficiently alleges that the parties had a relationship beyond that of a normal bank and customer, such as the bank providing investment banking advice or other advisory services.

The plaintiff fails to plead with particularity any facts demonstrating that the parties had a relationship beyond that of a normal bank and customer relationship, or that the defendant provided unique advisory services that could create a fiduciary relationship. The amended complaint merely alleges that the defendant owed the plaintiff a fiduciary duty to serve, maintain, and monitor the plaintiff’s accounts, which is insufficient to plead a cause of action for breach of fiduciary duty under CPLR 3211(a)(7).

(Internal citations omitted).

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