When you place your trust in a business partner, corporate officer, financial advisor, trustee, or other person in a position of confidence, you have a right to expect that they will act in your best interests. Unfortunately, fiduciaries sometimes betray that trust, through self-dealing, mismanagement, conflicts of interest, or outright fraud. If you believe a fiduciary has violated their legal duties to you, an experienced New York City breach of fiduciary duty attorney can help you recover damages and hold the wrongdoer accountable.
Our firm represents individuals, business owners, beneficiaries, shareholders, and investors throughout the five boroughs in complex fiduciary disputes. We bring a strategic, results-driven approach to litigation, whether your dispute arises in the corporate boardroom, a closely held business, a trust, an estate, or a professional advisory relationship.
What Is a Fiduciary Duty Under New York Law?
A fiduciary relationship exists when one party places confidence and trust in another, and the other accepts that trust and is bound to act for the benefit of the first party. New York courts have repeatedly recognized that fiduciary duties impose the highest standard of care known to law. As Chief Judge Cardozo famously wrote in Meinhard v. Salmon, a foundational New York case, fiduciaries owe one another "not honesty alone, but the punctilio of an honor the most sensitive."
Under New York law, fiduciaries generally owe two core duties:
- Duty of Loyalty: The fiduciary must act in the best interests of the beneficiary, avoiding conflicts of interest, self-dealing, and competing transactions.
- Duty of Care: The fiduciary must perform their responsibilities with the diligence, skill, and prudence that a reasonable person would exercise in similar circumstances.
Depending on the relationship, these duties may also include obligations of good faith, full disclosure, confidentiality, and accounting.
Common Fiduciary Relationships in New York
Fiduciary duties arise in many contexts, both in business and personal matters. Some of the most common relationships our New York City attorneys handle include:
- Corporate officers and directors who owe duties to the corporation and its shareholders
- Majority shareholders who owe duties to minority shareholders in closely held corporations
- Business partners in general partnerships and limited partnerships
- Members and managers of LLCs under the New York Limited Liability Company Law
- Trustees of express trusts and constructive trusts
- Executors and administrators of estates
- Attorneys-in-fact under powers of attorney
- Financial advisors, brokers, and investment managers
- Attorneys in their relationships with clients
- Joint venturers engaged in a common enterprise
Examples of Breach of Fiduciary Duty
A breach of fiduciary duty can take many forms. Some common examples we see in New York City litigation include:
- Self-dealing transactions where a fiduciary profits at the beneficiary's expense
- Diverting corporate or partnership opportunities for personal gain
- Misappropriating funds, assets, or confidential information
- Failing to disclose material conflicts of interest
- Mismanaging trust or estate assets
- Freezing out minority shareholders or LLC members
- Excessive compensation or unauthorized distributions
- Commingling personal and fiduciary funds
- Making imprudent investments in violation of the Prudent Investor Act
- Failing to provide a proper accounting
Elements of a Breach of Fiduciary Duty Claim in New York
To prevail on a breach of fiduciary duty claim under New York law, a plaintiff must generally prove three essential elements:
- The existence of a fiduciary relationship between the parties
- Misconduct by the defendant constituting a breach of that duty
- Damages directly caused by the breach
When the claim involves fraud or intentional misconduct, New York's CPLR 3016(b) requires that the allegations be pleaded with particularity. This is a procedural hurdle that demands careful drafting, and is one of the many reasons working with a seasoned New York fiduciary litigation attorney is essential.
Statute of Limitations
The statute of limitations for breach of fiduciary duty claims in New York depends on the nature of the relief sought:
- Three years when the plaintiff seeks money damages
- Six years when the plaintiff seeks equitable relief, or when the breach is based on actual fraud
Determining which limitations period applies (and when the claim accrued) can be complex. Certain doctrines, such as the continuous representation doctrine and equitable tolling, may extend the deadline. Acting quickly to consult an attorney protects your rights.
Remedies Available to Victims
New York law provides strong remedies for breach of fiduciary duty, including:
- Compensatory damages for financial losses caused by the breach
- Disgorgement of profits the fiduciary wrongfully obtained
- Forfeiture of compensation earned during the period of disloyalty under the "faithless servant" doctrine
- Constructive trusts imposed on misappropriated property
- Injunctive relief to stop ongoing misconduct
- Accountings requiring the fiduciary to disclose all transactions
- Removal of the fiduciary from their position
- Punitive damages in cases involving malicious or wanton misconduct
- Rescission of self-dealing transactions
How Our New York City Attorneys Can Help
Breach of fiduciary duty cases are document-intensive and often involve complex financial analysis, forensic accounting, and contested questions about the existence and scope of the fiduciary relationship itself. Our firm provides representation that includes:
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Pre-Litigation Investigation
Before filing suit, we conduct a thorough investigation to evaluate the strength of your claim, identify all potential defendants, calculate damages, and preserve critical evidence. In many cases, we can resolve disputes through demand letters, mediation, or negotiated settlements without the need for protracted litigation.
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Strategic Litigation in New York Courts
When litigation is necessary, we have extensive experience prosecuting and defending fiduciary claims in the New York Supreme Court Commercial Division, the Surrogate's Court for matters involving estates and trusts, and the federal courts in the Southern and Eastern Districts of New York.
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Derivative and Direct Shareholder Actions
For shareholders of New York corporations and members of New York LLCs, we handle both direct claims and derivative actions brought on behalf of the entity, including those involving freeze-outs, dilution, and corporate waste.
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Trust and Estate Disputes
We represent beneficiaries challenging trustee or executor misconduct, as well as fiduciaries defending against unwarranted claims, in proceedings before the New York County Surrogate's Court and surrogate's courts in Brooklyn, Queens, the Bronx, and Staten Island.
What to Do If You Suspect a Breach
If you believe a fiduciary has breached their duties to you, take the following steps to protect your rights:
- Preserve all documents related to the relationship, including contracts, communications, financial records, and account statements
- Avoid confrontation with the suspected wrongdoer until you have spoken with an attorney
- Document a timeline of events, transactions, and red flags
- Identify potential witnesses who may have relevant information
- Consult an experienced attorney promptly to evaluate your claim and meet applicable deadlines
Contact a New York City Breach of Fiduciary Duty Attorney
When trust is broken and your financial future is at stake, you need a legal team that combines deep knowledge of New York fiduciary law with aggressive, sophisticated advocacy. Our attorneys have successfully represented clients in some of the most challenging fiduciary disputes brought in New York City, and we are prepared to fight for the recovery you deserve.
Contact our office to schedule a confidential consultation. We will review the facts of your case, explain your legal options, and develop a strategic plan for your goals.
You can contact us by phone at 212-233-1233 or by email at [email protected].
