New York Court of Appeals Decision Recognizes Pre-Default Negligence Claim Against Indenture Trustees
July 30, 2008
Kelley Drye's Litigation and Corporate Trust practices have issued a client advisory discussing the duties of indenture trustees under New York law. On June 25, 2008, in a departure from prior law, the New York Court of Appeals held that "an indenture trustee owes a duty to perform its ministerial functions with due care, and if this duty is breached the trustee will be subjected to tort liability."