The court's decision noted that if BNY "neglected to manage the account appropriately, and did not make use of the investment information it had, in good faith, on behalf of its client, it may have violated the contract's implied covenant." As a result, the court upheld The Salvation Army's claims against BNY for breach of fiduciary duty, breach of contract, and gross negligence.Overall, The Salvation Army alleged that investments made by BNY on the Army's behalf left the Army's account holding "unproductive, toxic assets," and is seeking damages of approximately $22 million to support its vital charitable social service programs at this time. The many critical services the Army provides include food and clothing distribution, community development programs, and disaster relief. Each of these programs is dependent upon charitable donations, which account for virtually all of The Salvation Army's funding.
Salvation Army Complaint Against Bank Of New York Mellon Stands
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