When Denial of Books and Records Becomes Part of a Fiduciary Breach in Close Corporations

Access to financial records is important to minority shareholders in closely held corporations. A recent New York Supreme Court Commercial Division decision demonstrates that the denial of books and records to such minority shareholders could be used to support claims for oppression, breach of contract, and breach of fiduciary duty. In Lehan v. Montgomery (Sup. Ct., Suffolk County 2025), the dispute arose from a closely held corporation operating a car wash business in Long Island. The…