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Law Offices of Jonathan M. Cooper

Q:
Can an arrest for an unrelated matter also be a fiduciary breach in NY?

A:

There are circumstances where an arrest for a completely unrelated matter can nevertheless be considered - in the eyes of the New York courts - as a breach of fiduciary duty with regard to fiduciary and contractual duties at work. One example might be where a corporate officer's employment contract is in the public realm, and has a clause allowing for termination where the officer is arrested for actions involving moral turpitude; another context might be where an individual is the "face of the business," and after selling his business's goodwill, he is caught in a publicly compromising situation, thereby harming the interests of the business he had just sold. (For more on this topic, please see "NY Court: Dr's Arrest for Underage Solicitation Breached Contract").