Determining whether a fiduciary duty has been breached in New York is not an easy endeavor. First, it must be established that a fiduciary duty existed between the parties. Next, it must be determined whether that duty was breached. The area of law surrounding breaches of fiduciary duty is complex, and therefore requires the guidance of an experienced New York breach of fiduciary duty lawyer. An example of how this type of determination may play out in day-to-day life is outlined below.
Recently, Golden Gate Yacht Club, the holder of the America’s Cup yachting trophy was accused of breaching a fiduciary duty against a would-be competitor of the reigning champion. The potential competitor, African Diaspora Maritime Corp., alleges that the defendant unjustifiably denied its application to compete for the cup, breaching its fiduciary duty. The cup is governed by a Deed of Gift, which is a trust instrument subject to the laws of New York. ADM asserts that the terms of the trust dictate that the holder of the cup must not “unreasonably favor the interests of any competitor over another.”
In order to succeed in its New York breach of fiduciary duty claim, ADM will have to demonstrate the following:
- The holder of the cup owed a fiduciary duty to ADM as a cup competitor, including the duties of good faith and loyalty.
- By denying ADM’s application to compete with justification, the holder of the cup engaged in self-dealing.
- The holder of the cup placed its own self-interest above that of ADM.
If you suspect a breach of fiduciary duty, it is essential that you act quickly in order to protect your legal rights. For guidance, contact an experienced New York breach of fiduciary duty attorney today. Call our office at (888) 497-3410 for a free consultation.