United States Second Circuit

Dismissal of complaint for inadequate pleading of proximate causation with respect to state-law claims is vacated where each plaintiff who actually had funds on deposit with defendants has stated a claim against that bank or those banks for negligence and for aiding and abetting breach of fiduciary duty under New York law. Dismissal of plaintiffs' claims where the plaintiff had no funds on deposit, and claims for fraud and commercial bad faith -- with one exception -- is affirmed.

Appellate Information

• Decided 08/08/2006
• Published 08/08/2006

Judges

• SACK, Circuit Judge., Before:  WALKER, Chief Judge, KEARSE and SACK, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Edward S. Rudofsky, Zane and Rudofsky (James B. Zane, Eric S. Horowitz, of counsel), New York, NY, for Plaintiffs-Appellants.


• For Appellees:
  
• Thomas J. Moloney, Cleary Gottlieb Steen & Hamilton LLP (David Rush, of counsel), New York, NY, for Defendant-Appellee Fleet Bank, N.A., Allen C. Wasserman, Lord, Bissell & Brook LLP (James DeRose III, of counsel), New York, NY, for Defendant-Appellee Sterling National Bank., Celia Goldwag Barenholtz, Kronish Lieb Weiner & Hellman LLP (Chaya F. Weinberg-Brodt, of counsel), New York, NY, for Defendant-Appellee Republic National Bank of New York.