In Metropolitan West Asset Management, LLC v. Magnus Funding, Ltd., 2004 U.S. Dist. (SDNY 2004) the Court declined to dismiss a negligence claim brought against the investment manager of a special purpose fund by the holder of certain subordinate notes, after making a finding that the fund was a fiduciary of the plaintiff. The Federal Court reasoned that such fiduciary relationship extended to the investment manager because it was acting as an agent of the fund. However, in reaching that conclusion, the Federal Court relied on the case of Schneider v. Lazard Freres & Co., 159 AD2d 291, 297-98, 552 N.Y.S.2d 571 (1st Dep't 1990), which held that an investment advisor hired by a fiduciary is an agent of the fiduciary and is thus liable directly to shareholders for its negligent acts.