Landlord Claims Financial Misconduct by Managing Agent

Landlord hired a managing agent for a low-income apartment building it owned. Landlord later sued the managing agent, claiming that it breached its fiduciary duty and converted landlord's funds. Landlord asked the court to decide the case without a trial. The court ruled for landlord in part. Through sworn statements and financial records, landlord showed that the managing agent made multiple withdrawals from the building account. But affidavits submitted by the managing agent, as well as the management agreement between the parties, raised questions as to whether the transactions were authorized under the management agreement. A trial was needed to determine the facts.

Fitzpatrick House III, LLC v. Neighborhood Youth & Family Services: NYLJ, 10/20/08, p. 31, col. 1 (App. Div.2 Dept.; Spolzino, JP, Florio, Miller, Leventhal, JJ)