Practice point: A fiduciary relationship arises when one is under a duty to
act for or to give advice for the benefit of another upon matters within the
scope of the relation. It is grounded in a higher level of trust than normally
present in the marketplace between those involved in arm's-length business
transactions., and so a conventional business relationship, without more, is
insufficient. Rather, a plaintiff must make a showing of special circumstances
that could have transformed the parties' business relationship to a fiduciary
one, such as control by one party of the other for the good of the other.
Student note: The right to an accounting rests on the existence of a trust
or fiduciary relationship regarding the subject matter of the controversy at
issue.
Case:
DiTolla v. Doral Dental IPA of N.Y., LLC,
NY Slip Op 07266 (2d
Dept.
2012).
Here is the decision.
Tomorrow’s issue: Cashier’s checks.
