GILBERT v. POWERS (2026)

Supreme Court, Appellate Division, First Department, New York.

Stephen GILBERT, etc., et al., Plaintiffs–Appellants, v. Sandra POWERS, etc., et al., Defendants–Respondents.

6216

Decided: October 22, 2026

Manzanet–Daniels, J.P., Scarpulla, Higgitt, Rosado, JJ.

Dunnegan & Scileppi LLC, New York (William Dunnegan of counsel), for appellants. Paduano & Weintraub LLP, New York (Ari Silverman of counsel), for respondents.

Appeal from order, Supreme Court, New York County (Andrew S. Borrok, J.), entered September 11, 2025, which, insofar as appealed from, denied plaintiffs' motion pursuant to CPLR 3212(e) for partial summary on the application of the collateral source rule to permit plaintiffs to recover all the settlement proceeds paid in an underlying action as damages in this action, unanimously dismissed, without costs, as premature.

This appeal concerns the measure of damages recoverable from individual board members on plaintiffs' breach of fiduciary duty claims. This Court recently vacated the grant of summary judgment to plaintiffs on the majority of their claims, concluding that issues requiring a trial remained (Gilbert v Powers, ––– AD3d ––––, 2026 NY Slip Op 05457 [1st Dept 2026] ). In light of that determination, consideration of the applicability of the collateral source rule and the proper calculation of damages is premature.

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