On January 10, 2023, Justice Crane of the New York County Commercial Division issued a decision in ERA Capital L.P. v. Soleil Chartered Bank, 2023 NY Slip Op. 30121(U), holding that a bank did not have a fiduciary duty to its customer . . . Continue reading Bank Did Not Have Fiduciary Duty to Customer
On November 9, 2022, the Second Department issued a decision in Zi Kuo Zhang v. Lau, 2022 NY Slip Op. 06287, holding that a breach of fiduciary duty claim relating to an escrow account was not duplicative of a legal malpractice claim . . . Continue reading Breach of Fiduciary Duty Claim Relating to Escrow Account not Duplicative of Legal Malpractice Claim
On October 13, 2022, the First Department issued a decision in Eccles v. Shamrock Capital Advisors, LLC, 2022 NY Slip Op. 05750, holding that the internal affairs doctrine applies to an officer or director at the time of the conduct at issue . . . Continue reading Internal Affairs Doctrine Applies to Officer/Director at Time of Conduct
On October 4, 2022, Justice Cohen of the New York County Commercial Division issued a decision in Pinto v. Schinitsky, 2022 NY Slip Op. 33360(U), holding that directors who set their own compensation must show that the compensation is fair to the corporation . . . Continue reading Directors Who Set Their Own Compensation Must Show That the Compensation is Fair to the Corporation
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
On March 10, 2022, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Lengyel- Fushimi v Bellis, 2022 NY Slip Op 30809(U), dismissing a breach of fiduciary duty claim as duplicative of a breach of contract claim . . . Continue reading Breach of Fiduciary Duty Claim Dismissed as Duplicative of Breach of Contract Claim
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
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
On March 29, 2022, the First Department issued a decision in Matter of Grgurev v. Licul, 2022 NY Slip Op. 02088, holding that a plaintiff had an absolute right to an accounting notwithstanding the existence of an adequate remedy at law . . . Continue reading Fiduciary Must Give Accounting Notwithstanding the Existence of an Adequate Remedy at Law
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
