NY’s High Court Limits Time to Bring Breach of Fiduciary Duty Claim April 22, 2009

In a March 26 decision regarding a commercial litigation case, New York’s Court of Appeals held that where a business sought primarily to recover monetary damages, rather than injunctive relief,  resulting from its broker’s alleged breach of fiduciary duties to the plaintiff company, the business had only 3 years within which to commence suit rather than the 6 years generally afforded to breach of contract claims under New York law.

This ruling had particularly serious ramifications for the plaintiff company, IDT Corp., because the shorter time period effectively resulted in the dismissal of their property damage claims.

The moral of the story? If you think your small business has been victimized by a fiduciary, make sure you contact a lawyer promptly; the short-term expenditure on a qualified and experienced lawyer may save you untold heartache – and money – later on.

Jonathan Cooper is a New York Business Litigation and New York Commercial Litigation Lawyer with a focus on New York breach of contract and New York business fraud claims before the Nassau, Queens, Brooklyn, Bronx, Westchester and Suffolk County courts of New York State. For more information, feel free to contact his Long Island office at 516-791-5700.

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