Q: What Counts as a Fiduciary Relationship Under New York Law?
A:In a New York court of law, a breach of fiduciary duty lawsuit can be filed when one party of a contract feels wronged by another party. The two parties can include corporations, companies, or individuals. A business relationship is only considered fiduciary when the level of trust between the two parties goes above and beyond what is normally seen in a business relationship.
Each situation where the relationship status is questionable needs to be looked at individually, but there are a few instances where the relationship is generally seen as a fiduciary nature. These include:
- Financial Advisors
- Corporate Officers and Directors
- Real Estate Brokers
- Business Partners
These relationships require a much more secure trust because they involve large sums of money, trade secrets, business strategies, and the power to cripple one’s business. This is not another version of breach of contract, and is mutually exclusive from one.
There is no clearly stated list or law of what does and doesn’t count as a fiduciary relationship, and many cases have been dismissed by courts because they did not meet the level of trust required.
If you have more questions regarding what counts as a fiduciary duty relationship and what you can do if you feel you’ve been wronged in a high-trust relationship, get in touch with a New York business lawyer who can help you decided what to do next. Contact the Law Offices of Jonathan M. Cooper for a free consultation that might help save you or your company from devastating losses.