November 26, 2013

A cause of action for an accounting.

Practice point:  While there was no question as to whether the parties shared a confidential relationship as members of a committed family unit, the complaint failed to allege that the fiduciary relationship necessary to obtain an accounting was created by the plaintiff entrusting to the defendant some money or property with respect to which the defendant was bound to reveal her dealings. Therefore, the plaintiff failed to state a cause of action for an accounting, and that cause of action was dismissed.

Student note:  The right to an accounting is premised upon the existence of a confidential or fiduciary relationship and a breach of the duty imposed by that relationship respecting property in which the party seeking the accounting has an interest.

Case:  Dee v. Rakower, NY Slip Op 07443 (2d Dept. 2013).

Here is the decision.

Tomorrow's issue: An out-of-possession landlord's liability.