Skip to main content

Attorneys Owed A Fiduciary Duty To Clients With Respect To Sale Of Clients' Shares In An Apartment Complex To Attorneys

By Bashian & Papantoniou
May 15, 2011

Practice Areas

Resourses

The  Supreme Court, Appellate Division, Second Department , recently held that a group of attorneys owed a fiduciary duty to their clients with respect to the sale of their clients’ shares in an apartment complex to the attorneys. The Court reasoned that although the attorneys had not been retained to represent the clients in that specific transaction, they had an ongoing attorney-client relationship with the clients during which time they drafted several wills for them and represented them in other transactions.  It is important to note that only “a fiduciary relationship” is required – i.e. the relationship is not act specific.  Under New York law, an attorney who seeks to avail himself of a contract made with his client, is bound to establish affirmatively that it was made by the client with full knowledge of all the material circumstances known to the attorney, and was in every respect free from fraud on his part, or misconception on the part of the client, and that a reasonable use was made by the attorney of the confidence reposed in him.
Category: Litigation

  • Related Posts

    26 June 2026
    Buying or Selling a Business? Why the Right M&A Attorney Matters
    Read More

  • Related Posts

    13 June 2026
    The Deal That Closes Twice: A Buyer's Guide to Deferred Closings
    Read More

  • Related Posts

    06 June 2026
    Going Into Business With Friends or Family? Why You Need an Attorney-Drafted Operating or Partnership Agreement
    Read More