This blog previously has addressed the statute of limitations, a concept that has special significance for breach of fiduciary duty claims. Whether a fiduciary-duty claim is timely is highly fact-dependent and not always clear-cut. For that reason, plaintiffs’ lawyers often get creative in trying to salvage an otherwise viable fiduciary-duty claim that is on the brink…
All posts tagged Corporations
Manipal Educ. Americas, LLC v. Taufiq: Fiduciary Duties of Employees to Employers
Breach of fiduciary duty claims frequently arise within the employment context. As a general matter, employees owe their employers basic fiduciary duties in certain circumstances. A potentially fertile area of litigation involves employees who are disloyal to their employers. A recent decision of the Appellate Division, First Department, contains an informative analysis of fiduciary-duty claims…
Apollo Mgt., Inc. v. Cernich: The Flexibility of Breach of Fiduciary Duty Claims
An interesting and easily overlooked decision of the Appellate Division, First Department, shows just how flexible fiduciary duty claims can be. In Apollo Mgt., Inc. v. Cernich, 202 A.D.3d 527 (1st Dep’t 2022), the court allowed the plaintiffs to seek money damages on a fiduciary-duty theory of liability for misconduct that really fell under an…
Newman v. Newman: Fiduciary Duties in Small, Closely-Held Family Corporations
This blog previously has discussed fiduciary duty claims in the shareholder-derivative context. Courts in derivative suits frequently address fiduciary duty questions, especially where the dispute involves a small, closely-held family corporation. Yet another recent decision of the Appellate Division, First Department, deals with fiduciary duties in a derivative action: Newman v. Newman, 202 A.D.3d 442…
Sajust, LLC v. Mendelow: Fiduciary Duties in Shareholder and LLC Derivative Suits
Breach of fiduciary duty questions often arise in shareholder derivative actions. These lawsuits involve a shareholder of a corporation who files suit derivatively—that is, on the corporation’s behalf rather than in her own individual capacity—to recover for some alleged wrong done to the corporation itself. In such cases, the directors of the corporation often have…