Except in Providing a Defense, an Insurance Company Does Not Owe a Fiduciary Duty to its Insureds

Except in Providing a Defense, an Insurance Company Does Not Owe a Fiduciary Duty to its Insureds

On September 21, 2022, the Second Department issued a decision in Neurological Surgery, P.C. v. MLMIC Ins. Co., 2022 NY Slip Op. 05211, holding that except in providing a defense, an insurance company does not owe a fiduciary duty to its insureds . . . Continue reading Except in Providing a Defense, an Insurance Company Does Not Owe a Fiduciary Duty to its Insureds

Faithless Servant Doctrine Does Not Apply to Actions That Did Not Use Plaintiff’s Time or Resources

Faithless Servant Doctrine Does Not Apply to Actions That Did Not Use Plaintiff’s Time or Resources

On April 14, 2022, the First Department issued a decision in Jeremias v. Toms Capital LLC, 2022 NY Slip Op. 02495, holding that a faithless servant claim could not be based on actions taken to start a new business that did not use the plaintiff’s time or resources . . . Continue reading Faithless Servant Doctrine Does Not Apply to Actions That Did Not Use Plaintiff’s Time or Resources

Creditors Do Not Have Standing to Bring a Breach of Fiduciary Claim Under Delaware Law

Creditors Do Not Have Standing to Bring a Breach of Fiduciary Claim Under Delaware Law

On April 11, 2022, Justice Borrok of the New York County Commercial Division issued a decision in Alesco Preferred Funding VIII, Ltd. v. ACP RE, Ltd., 2022 NY Slip Op. 50258(U), holding that creditor could not assert a breach of fiduciary duty claim under Delaware law . . . Continue reading Creditors Do Not Have Standing to Bring a Breach of Fiduciary Claim Under Delaware Law

Holders of Less than a Majority of Company’s Shares Did Not Have a Fiduciary Duty to Company

Holders of Less than a Majority of Company’s Shares Did Not Have a Fiduciary Duty to Company

On January 17, 2022, Justice Masley of the New York County Commercial Division issued a decision in Eccles v. Shamrock Capital Advisors, LLC, 2022 NY Slip Op. 30187(U), holding that holders of less than a majority of a company’s shares did not have a fiduciary duty to the company . . . Continue reading Holders of Less than a Majority of Company’s Shares Did Not Have a Fiduciary Duty to Company