News & Analysis as of

Breach of Duty Liability

Marshall Dennehey

Legal Update for Insurance Agents & Brokers – CASE LAW UPDATE

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Federal Court Applies Blumberg to Distinguish Accrual of Negligence and Fiduciary Claims in Insurance Agent Dispute - Romero v. Kinsale Ins. Co., No. 25-20084-CIV, 2025 WL 837820 (S.D. Fla. Mar. 18, 2025) - In a recent...more

Carey Olsen

Eastern Caribbean Court of Appeal delivers key ruling concerning directors' duties and creditor protection in the British Virgin...

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In the recent decision of Byers & Richardson v Chen Ningning (BVIHCMAP2024/0009) ("Byers"), the Eastern Caribbean Court of Appeal ("COA") considered the scope of the director’s duty to creditors when a company is insolvent or...more

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

DarrowEverett LLP

Fiduciary Duties and Remedies in Florida LLCs: What Members Need to Know

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Disputes among members of a limited liability company (LLC) are inevitable. Unlike casual disagreements with friends or roommates, conflicts within an LLC can have legal and financial consequences. Recognizing this reality,...more

ArentFox Schiff

ESG Update: Corporate Directors May Be Obligated to Assess Political Risk

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Right now, much about the world is uncertain. Risks posed by political changes dominate the headlines and also weigh heavily on many decisions made by corporations, their advisors, and their stakeholders....more

Charles E. Rounds, Jr. - Suffolk University...

Individual Trustee Delegates to Financial Institution the Job of Taking Custody and Keeping Track of Income and Principal: The...

While PC software programs are a practical improvement over the trustee’s hard-copy ledger book, when it comes to keeping track of trust income and principal these programs still require serious clerical monitoring on the...more

Charles E. Rounds, Jr. - Suffolk University...

Due to scrivener negligence, the dispositive provisions of a trust fail to reflect the deceased settlor’s wishes: Can it be that...

Assume the deceased settlor of a trust had intended that his niece be included in the beneficiary class, but his estate-planning attorney had negligently made no provision for her in the governing instrument. After settlor’s...more

Zelle  LLP

How to Be a Reasonably Prudent Insurer Under the Stowers Doctrine, Part II

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There are a number of factors that Courts review when determining whether an insurer has acted under a “reasonably prudent insurer” standard under the Stowers doctrine. We have previously discussed key issues to look out for...more

Hicks Johnson

SCOTX Ruling Confirms Individual Liability for Corporate Owners Who Commit Torts

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In Texas, as most other states, it is long settled that corporate agents are personally liable for their own tortious or fraudulent conduct—even if the conduct was done in their capacity as a corporate agent. Section 21.223...more

McGlinchey Stafford

Court Clarifies HOA Responsibilities in Tenant vs. Tenant Conflicts

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Often, in litigation between an owner and their homeowners association (HOA), there is a question regarding the nature and the extent of the duty owed by the HOA to an owner (or even to a tenant of an owner). The answer to...more

Farrell Fritz, P.C.

Diving Into the Shallow Waters of New York Law Permitting Elimination of LLC Managers' Liability for Breach of Fiduciary Duty

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There’s a ton of Delaware caselaw enforcing Section 18-1101 (c) of that state’s LLC Act as amended in 2004, authorizing LLC agreements to eliminate the members’ and managers’ liability for breach of fiduciary duty, the only...more

Freiberger Haber LLP

Thorny Issues Concerning the Statute of Limitations for Declaratory Relief and Breach of Fiduciary Duty

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Statutes of limitations limit the time within which a defendant can be held liable for any type of alleged wrongdoing. Plaintiffs who do not pursue their rights within the limitations period will find the courthouse doors...more

Rumberger | Kirk

Viewpoint: Early Action Key to Mitigating Risk in Professional Liability Claims

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Professional liability claims impact a multitude of professions, including those in the legal, medical, financial and insurance industries. Claims for malpractice, breach of contract, breach of fiduciary duty and related...more

Foley & Lardner LLP

Palkon v. Maffei: Delaware’s Warning Shot to Controlling Stockholders Seeking to Evade Fiduciary Duties by Reincorporating

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In late February, the Chancery Court denied a motion to dismiss a stockholder lawsuit against the controlling stockholder and board of directors of TripAdvisor, Inc., seeking to enjoin a reincorporation of TripAdvisor into...more

Venable LLP

Fiduciary Liability Limitations Under Nevada Law Trigger Entire Fairness Review of Conversion from Delaware Due to Controlling...

Venable LLP on

The Delaware Court of Chancery, in Palkon v. Maffei, et al., C.A. No. 2023-0449-JTL (Del. Ch. Feb. 20, 2024), determined that a reduction in the liability exposure of a fiduciary due to the conversion of a Delaware...more

Proskauer - Corporate Defense and Disputes

Delaware Chancery Court Holds that High Standard for Oversight Liability Applies to Corporate Officers

The Delaware Court of Chancery recently held that claims for breach of the fiduciary duty of oversight are not easier to plead against corporate officers than against corporate directors. The decision in Segway Inc. v. Cai...more

Freiberger Haber LLP

Amended Complaints, New Defendants and the Relation-Back Doctrine

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“A” brings an action against “B”. The causes of action asserted against “B” are all timely for statute of limitations purposes. Following discovery, “A” learns that “C” played a material role in the facts and...more

Skadden, Arps, Slate, Meagher & Flom LLP

Court Finds Mindbody CEO Liable Under Revlon and That Buyer Aided and Abetted Disclosure Violations

In March 2023, the Delaware Court of Chancery issued a rare decision holding an officer personally liable for damages for breach of fiduciary duty under a post-closing Revlon enhanced scrutiny analysis. Specifically, the...more

DarrowEverett LLP

Protect Ya Neck: The Wu-Tang Clan, Independent Contractors and the Potential Expansion of Negligent Hiring Claims

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Instead of toiling over a 130-page private placement memorandum as an attorney or reviewing payroll as the head of the family business, imagine for a moment that you are Method Man, the de-facto lyrical leader of the Wu-Tang...more

Patton Sullivan Brodehl LLP

Quasi-Judicial Immunity for Court-Appointed Partition Brokers

In California, several classes of persons are entitled to some form of immunity protecting them from liability for activities performed in connection with judicial proceedings. For example, “judicial immunity” bars civil...more

King & Spalding

Working From Home? Stay Alert to Avoid Insider Trading or Tipping Liability!

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Even when surrounded by the ones we love, it is important to keep confidential information away from them. Others may not realize that they should not trade after overhearing interesting comments—or worse, they may try to...more

Kerr Russell

Court Ruling Offers New Consideration For Corporate Officers, Directors And LLC Managers

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Managers of LLCs have similar duties to members of LLCs. A breach of these fiduciary duties can lead to a lawsuit and personal liability for directors, officers and LLC managers. ...more

Arnall Golden Gregory LLP

Lender Liability Is Not Dead: A Recent Case Presents a Warning for Lenders (and a Roadmap for Borrowers)

A recent decision from the U.S. Bankruptcy Court for the Northern District of Texas illustrates that aggressive lender action can lead to “lender liability” in a loan workout. Bailey Tool & Mfg. Co., et al. v. Republic Bus....more

Goodwin

Litigation Insights - July 2021

Goodwin on

FOREWORD - On behalf of the new and expanding Goodwin London litigation team I am delighted to welcome you to our first ever ‘Litigation Insights’: a series of quarterly updates on important and interesting developments...more

Allen Matkins

Nevada Supreme Court: Inherent Fairness Standard Cannot Be Used To Rebut The Business Judgment Rule

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Nevada has codified the business judgment rule as follows: "directors and officers, in deciding upon matters of business, are presumed to act in good faith, on an informed basis and with a view to the interests of the...more

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