HEARST MAGS. v. GREENSTONE/FONTANA CORP., 139 A.D.3d 623 (2016)
Court: Supreme Court of New York
Number: innyco20160531415
Visitors: 11
Filed: May 31, 2016
Latest Update: May 31, 2016
Summary: As a general matter, the unasserted claim by plaintiff magazine against its frequent advertiser would not constitute a cognizable claim for damages ( see Phillips-Smith Specialty Retail Group II v Parker Chapin Flattau & Klimpl, 265 A.D.2d 208 , 210 [1st Dept 1999], lv denied 94 N.Y.2d 759 [2000]). Moreover, where the funds were converted by defendant advertising agency, but the ad for which it received the funds nevertheless ran, there is no claim for conversion of the funds ( see generally
Summary: As a general matter, the unasserted claim by plaintiff magazine against its frequent advertiser would not constitute a cognizable claim for damages ( see Phillips-Smith Specialty Retail Group II v Parker Chapin Flattau & Klimpl, 265 A.D.2d 208 , 210 [1st Dept 1999], lv denied 94 N.Y.2d 759 [2000]). Moreover, where the funds were converted by defendant advertising agency, but the ad for which it received the funds nevertheless ran, there is no claim for conversion of the funds ( see generally ..
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As a general matter, the unasserted claim by plaintiff magazine against its frequent advertiser would not constitute a cognizable claim for damages (see Phillips-Smith Specialty Retail Group II v Parker Chapin Flattau & Klimpl, 265 A.D.2d 208, 210 [1st Dept 1999], lv denied 94 N.Y.2d 759 [2000]). Moreover, where the funds were converted by defendant advertising agency, but the ad for which it received the funds nevertheless ran, there is no claim for conversion of the funds (see generally Hillsley v State Bank of Albany, 24 A.D.2d 28, 30 [1st Dept 1965]).
However, where, as here, a fiduciary profits from a breach of loyalty, those profits must be paid over to the principal (see Tsutsui v Barasch, 67 A.D.3d 896, 898-899 [2d Dept 2009]). Accordingly, the trial court properly entered judgment in plaintiff's favor in the amount of the ill-gotten proceeds.
Source: Leagle
