How to Calculate the Statute of Limitations for a New York Breach of Fiduciary Duty Claim

Under New York law, most causes of action - or claims - have explicit statutes of limitation (i.e., time within which the claim must be brought), there is an important exception to this rule: breach of fiduciary duty claims. In these cases, the statute of limitations will depend entirely on the nature of the relief that the plaintiff is seeking.

"What does that mean?" you ask.

Fortunately, in a 2009 opinion, New York State's highest court clarified the standard - at least somewhat - stating as follows:

"New York law does not provide a single statute of limitations for breach of fiduciary duty claims. Rather, the choice of the applicable limitations period depends on the substantive remedy that the plaintiff seeks. Where the remedy sought is purely monetary in nature, courts construe the suit as alleging "injury to property" within the meaning of CPLR 214 (4), which has a three-year limitations period. Where, however, the relief sought is equitable in nature, the six-year limitations period of CPLR 213 (1) applies. Moreover, where an allegation of fraud is essential to a breach of fiduciary duty claim, courts have applied a six-year statute of limitations under CPLR 213 (8)." IDT Corp, v. Morgan Stanley Dean Witter & Co., 12 NY3d 132, 139 (2009).

As a practical matter, this means that if the plaintiff seeks only to recover money damages, then he must bring his breach of fiduciary duty claim within 3 years from the breach; on the other hand, if the plaintiff seeks relief that isn't monetary, such as an injunction, then the 6 year statute of limitations will apply.

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