Rather v. CBS Corp. - 2009 NY Slip Op 6738, 68 A.D.3d 49, 886 N.Y.S.2d 121 (App. Div. 1st Dept.)

Rule:

Employment relationships do not create fiduciary relationships.

Facts:

The action arose out of a broadcast that plaintiff reporter narrated on a television program in 2004 about then President George W. Bush's service in the Texas Air National Guard. The reporter alleged, inter alia, that the employer fraudulently induced him to apologize personally for the broadcast, to remain silent as to his belief that the broadcast was true, removed him as an anchor, and denied him the opportunity to cover important news stories until his contract was terminated. The plaintiff reporter commenced the present action against defendants, asserting claims of breach of contract, breach of fiduciary duty, claims of fraud and a claim of tortious inducement of breach of contract. The New York County Supreme Court granted the defendant employer’s motion to dismiss the reporter's claims for fraud, breach of the implied covenant of good faith and fair dealing, and tortious interference with contract, and denied the employer's motion to dismiss the claims for breach of contract and breach of fiduciary duty. Plaintiff reporter appealed and defendant employer cross-appealed. 

Issue:

Should the court have dismissed the plaintiff’s complaint in its entirety?

Answer:

Yes.

Conclusion:

The appellate court found, inter alia, that the employer was under no contractual obligation to use the reporter's services or to broadcast any program so long as it continued to pay him the applicable compensation. The reporter's claims for lost business opportunities, damages for loss of reputation, and breach of fiduciary duty were unsupported. The length of the reporter's tenure with the employer was irrelevant to, and did not support, a fiduciary relationship claim. His future earnings were speculative. The reporter's claim for breach of the implied covenant of good faith and fair dealing was duplicative of his breach of contract claim. Therefore, the reporter’s complaint should have been dismissed in its entirety.