Inaction in Face of Alleged Knowledge of Another's Wrongdoing Not Aiding and Abetting

On April 19, 2016, the First Department issued a decision in Balanced Return Fund Ltd. v. Royal Bank of Canada, 2016 NY Slip Op. 02928, affirming the dismissal of an aiding and abetting fraud claim, explaining:

Plaintiff failed to raise an issue of fact by submitting evidence showing that defendant knew it was structuring the transaction to plaintiff's detriment in order to benefit the non-party primary wrongdoer. To the extent that the alleged assistance provided to the primary wrongdoer consisted of inaction, it was insufficient to support the aiding and abetting claims.

(Internal citations omitted).