Ohio Court of Appeals Confirms No Aiding and Abetting Breach of Fiduciary Duty Claim

Ohio Court of Appeals Confirms No Aiding and Abetting Breach of Fiduciary Duty Claim

      In a recent decision, the Ohio Court of Appeals affirmed the existing law that Ohio does not recognize a claim for aiding and abetting a breach of fiduciary duty. Cohen v. Dulay, No. 28071, 2017 WL 3175781, 2017-Ohio-6973 (July 26, 2017).

      This lawsuit, brought by the receiver of a failed company, sought to bring a variety of breach of fiduciary duty and related claims against the corporation’s directors. Included therein were allegations that the directors aided and abetted other breaches of fiduciary duties. Considering the trial court’s dismissal of those claims on summary judgment, the Court of Appeals wrote:

Lastly, with respect to Cohen’s aiding, abetting, inducing or participating in breaches of fiduciary duties claim, we conclude that such a cause of action is not cognizable under Ohio law. See Sacksteder v. Senney, 2d Dist. Montgomery No. 24993, 2012–Ohio–4452, ¶ 73–76 (holding that Ohio courts have not recognized a cause of action for participation in a breach of fiduciary duty), citing DeVries Dairy, L.L.C. v. White Eagle Coop. Assn., Inc., 132 Ohio St.3d 516, 2012–Ohio–3828, ¶ 2 (holding that Ohio has never recognized a cause of action for tortious acts in concert under 4 Restatement (2d) of Torts, § 876 (1979)). Accordingly, we determine that the trial court did not err by dismissing Cohen’s claim for aiding, abetting, inducing or participating in breaches of fiduciary duties.