587 Development Inc. v. Movtady

Business Law

New York Law Journal

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Justice Thomas Feinman

October Sky moved to dismiss 587 Development Inc.'s complaint for failing to state a cause of action. 587 cross-moved for a default judgment against October Sky in this action for breach of fiduciary duty concerning certain real property. 587 argued the trustees did not sell the property for fair market value, nor turn over any proceeds of the sale to it. The court found the complaint fell short as it failed to contain any facts establishing a fiduciary relationship, or delineating which of the defendants owed a duty to 587. It noted the complaint failed to allege specific acts of misconduct by defendants, individually, that caused 587 to sustain damages, noting the complaint was devoid of any factual indication of what the alleged fraud was. Also, the complaint did not allege a relationship between 587 and October Sky, or any facts giving rise to a fiduciary duty. Thus, defendant's motion to dismiss the complaint was granted.

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