Continental Industries Group, Inc. v. Ustuntas: Post-Employment Fiduciary Duties of Employees to Employers

Breach of fiduciary duty claims often arise in disputes between employers and their former employees, as this blog has discussed. Generally speaking, employees often owe their employers fiduciary duties. But can an employee’s fiduciary duties extend beyond the duration of his employment? The opinion of the Appellate Division, First Department, in Cont. Indus. Group, Inc. v. Ustuntas, 211 A.D.3d 601 (1st Dep’t 2022), helps clarify this question.

Continental Industries Group (“CIG”), the plaintiff in this dispute, was a New York-based company engaged in the international trade of commodities such as chemicals and resins. Hakan Ustuntas, the defendant, worked for CIG. While in CIG’s employ, Ustuntas became a shareholder of two additional entities: Plasmar, one of CIG’s customers, and Marchem, Plasmar’s “sister company.” Subsequently, Ustuntas retired from CIG.

Read the full blog here.