Who owes fiduciary duties
Fiduciary duties arise when one person manages money or property on behalf of another. Trustees owe them to beneficiaries, executors and administrators to the people entitled to an estate, agents under a power of attorney to the person who appointed them, and officers, directors, and partners to the business and, in some settings, to its owners. The core obligations are loyalty and care: not putting one's own interests ahead of the people served, and managing assets prudently. Disputes often grow out of self-dealing, mixing personal and entrusted funds, unexplained transfers, refusal to account, or simple neglect. A fiduciary who made a reasonable decision that turned out poorly is not automatically liable, which is why the facts behind each decision matter.
Where the case is heard
In New York, disputes over estates and many trusts are usually brought in Surrogate's Court, often through a proceeding that compels the fiduciary to account, meaning to produce a full record of what was received, spent, and distributed. Disputes among partners, members, or shareholders usually go to the Supreme Court, and some are heard in its Commercial Division. Trust instruments and operating agreements may contain provisions on dispute resolution, exculpation, or indemnification that shape the case. Remedies can include removing a fiduciary, ordering repayment, or other relief tailored to the harm. Fiduciaries who are accused have rights as well, including the chance to defend their decisions and, in some cases, to have legal fees paid from the estate or trust.
Starting with the governing documents
Gather the will, trust instrument, power of attorney, or operating agreement, along with any statements, tax returns, and correspondence you have received. If you asked for information and were refused, keep those requests and responses. When you first meet with us, we look at your standing to bring a claim, which records you may be entitled to see, and whether a formal accounting is the logical first step. We also consider the relationships involved, because fiduciary litigation often involves relatives or partners who will keep dealing with each other. Deadlines can apply, and some run from when a fiduciary's account is presented or settled, so they are worth reviewing early.
