Q: What should I do if a party to my unwritten agreement breached a fiduciary duty in New York?
Under New York law, a party can be found to have committed a breach of fiduciary duty even where no formal, written agreement existed between the parties. In order to succeed on such a claim, however, the plaintiff must show that the fiduciary duty arose outside of a duty that could only have been created by a contract. This area of the law is complex and requires the assistance of a knowledgeable New York breach of fiduciary duty lawyer.
A similar breach of fiduciary duty case is currently being heard by a New York appeals court. In that matter, two parties agreed to negotiate together in good faith to purchase another company. The defendant then reportedly went behind the back of the plaintiff and purchased the company on its own. The plaintiff argues that the fiduciary duty arose by virtue of the parties’ agreement to negotiate in good faith. The Defendant argues that the lack of formal joint venture agreement means there was no such duty.
If you suspect that a fiduciary has breached its duty to you absent a written agreement, consider taking the following steps:
- Contact an experienced New York breach of fiduciary duty attorney for guidance.
- Obtain copies of all correspondence between the parties.
- Gather evidence that demonstrates a fiduciary duty existed between the parties even without a contract, such as through policy, custom, or by law.
- Gather evidence that demonstrates the fiduciary breached that duty by engaging in self-dealing.
- Obtain evidence that demonstrates the amount of harm that you suffered as a result.
To learn more about breach of fiduciary actions, contact a New York business litigation attorney today. Call our office at (888) 497-3410 for a consultation.