Q: What duties are imposed when a fiduciary relationship exists between two parties in New York?
A fiduciary duty exists where the relationship between two parties is one that calls for a greater level of trust than it would with average strangers conducting business. An example of a relationship calling for a fiduciary duty would be between an attorney and his or her client. Whether the duty exists, however, is based upon the unique facts and circumstances surrounding the relationship.
For example, several former patients of a hospital recently filed a breach of fiduciary duty claim in New York after their personal information was stolen from the hospital’s database. A court will have to assess whether a fiduciary relationship existed, as well as whether it was breached.
When a fiduciary relationship is found to exist, certain duties are imposed under New York law. These duties include:
- A duty of care
- A duty of loyalty
- A duty of honesty
Violating one of these duties can result in a breach. In addition, any party that helps to induce a breach of a fiduciary duty also can be held liable.
A statute of limitations surrounds every breach of fiduciary duty claim, regardless of the type of duty breached. For this reason, it is vital to contact a knowledgeable professional as soon as you suspect a breach may have occurred. Your attorney can assist you in evaluating the relationship between the parties and with determining the best course of action for obtaining a recovery.
To learn more, contact a New York business litigation attorney today. Call our office at (888) 497-3410 for a consultation.