In Yu Han Young v. Chiu , Yu Han Young sued Cathy Chiu to compel her to transfer certain real property.
Apparently, Chiu took it upon herself to promote her own personal interests by "secretly establishing a competing entity and acquiring the property at issue." When Young got wind of the arrangement, litigation was filed to force Chiu to divest a 50% interest in the real property at issue.
When the Queens County Supreme Court granted Young's request, Chiu appealed to the Appellate Division, Second Department, which concluded that Chiu, as a corporate officer, owed the entity her "undivided loyalty."
Since Chiu diverted and exploited a company asset for her own benefit, the AD2 found that she violated her "fiduciary duty," and had been properly ordered to transfer 50% of the property to Young.
Chiu probably thinks that bites!
To download a copy of the Appellate Division's decision, please use this link: Yu Han Young v. Chiu