Justia New York Court of Appeals Opinion Summaries

In September 2002, an accounting firm hired by plaintiff discovered irregularities in plaintiff's financial records. An audit revealed that the assistant superintendent had stolen over $200,000 from plaintiff's accounts. The Roslyn Union Free School District Board ("Board") was notified of the misconduct and decided to allow the assistant superintendent time to repay misappropriated funds and retire. Plaintiff initiated a lawsuit in 2005 against former and current members of the Board, including defendant who was on the Board for a year starting in 2000, for the Board's allegedly lax management during the years the funds disappeared and their attempt to keep the illegal activities under wraps. At issue was whether a three or six year statute of limitations applied to causes of action for negligence and breach of fiduciary duty by a school district against a former member of the school board. The court held that a six year statute of limitations period under CPLR 213(7) was applicable and therefore, the causes of action for breach of fiduciary duty, negligence, and declaratory judgment should be reinstated as timely.