Published: October 27, 2014
Pastore & Dailey recently succeeded in defending their client’s claims against a motion to strike in Connecticut Superior Court. Pastore & Dailey was successful on the majority of their counts, including fraud, multiple counts for breach of contract and breach of the covenant of good faith and fair dealing, CUTPA and breach of fiduciary duty. While most of Pastore & Dailey’s successful rulings came from the bench, the Judge did issue a written opinion as to the breach of fiduciary duty claims. Pastore & Dailey prevailed in arguing that their client, a co-owner and co-manager of a successful hedge fund, was in fact owed a fiduciary duty by the other co-owner/manager, despite their equal ownership interests. The court agreed with Pastore & Dailey’s arguments that the existence of a fiduciary relationship depends on several factors and simply because there is equal ownership does not preclude one party from operating as a fiduciary to the other in their management and control. Thus, the court allowed the breach of fiduciary duty claim to survive the motion to strike and remain a valid cause of action in the case along with the majority of their claims, including their most important claims.