NY Court of Appeals -- Outside counsel doesn't owe fiduciary duty to limited partners
A lot of NY lawyers representing limited partnerships will sleep a little bit better tonight. In Eurycleia Partners, LP v. Seward & Kissel, LLP, the NY Court of Appeals ruled today that they do not owe a fiduciary duty to individual limited partners. The court analogized the relationship of counsel to limited partners with that of the relationship of corporate ounsel to shareholders -- and noted that it is well settled that a corporation’s attorneys do not represent shareholders or employees.
The decision also affirmed the dismissal of fraud and aiding and abetting claims against the fund’s lawyers. More about that in my next post.
