Pappas v. Tzolis
Court of Appeals of New York
982 N.E.2d 576 (N.Y. 2012)
Relevant factsFree
After the members' relationship deteriorated over Tzolis's handling of the leased building, Tzolis bought out Pappas and Ifantopoulos at a price 20 times their original investment, with signed closing documents disclaiming reliance on Tzolis and releasing any fiduciary duties, only for Tzolis to assign the lease for $17.5 million shortly after, allegedly having already begun negotiating that deal before the buyout.
IssueFree
Whether a release of fiduciary duties is valid if a sophisticated principal knowingly enters a release with a fiduciary acting in the fiduciary's own interests in a relationship lacking trust.