News & Analysis as of

Breach of Duty Discovery

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

When the centerpiece of a trustee’s defense in a breach-of-fiduciary-duty action is an empty file cabinet and a general lack of...

An incident of the trustee’s duty to be generally prudent, to account (or report) to beneficiaries, and to refrain from breaches of the duty of undivided loyalty, such as engaging in unauthorized self-dealing, is the...more

Marshall Dennehey

Failure to Comply with Discovery Order Results in Dismissal with Prejudice and Monetary Sanctions

Marshall Dennehey on

Robert Hayes, et al. v. Aegis Capital, FINRA Case #22-02854 - Six claimants asserted causes of action for suitability, churning, failure to supervise, breach of fiduciary duty, breach of contract, unauthorized trading,...more

Morris James LLP

Spoliation of Email and Texts Leads to Adverse Inferences and Fee Shifting

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Gener8 LLC v. Castanon, 2022-0246-LWW (Del. Ch. Sept. 29, 2023) - This dispute concerned a non-compete agreement that the plaintiffs alleged the defendant breached by establishing a competing business. The defendant denied...more

Freeman Law

Texas Law Update: Statute of Limitations, the Discovery Rule, and Fraudulent Concealment

Freeman Law on

On January 13, 2023, the Texas Supreme Court issued its opinion in Marcus & Millichap Real Estate Investment Services of Nevada, Inc. v. Triex Texas Holdings, LLC, __ S.W.3d __, 2023 WL __ (Tex. Jan. 13, 2023) (per curiam)...more

Morris James LLP

Chancery Curtails Discovery in Appraisal Action Instituted as a Substitute for Books and Records Demand

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Wei v. Zoox, Inc, C.A. No. 2020-1036-KSJM (Del. Ch. Jan. 31, 2022) - Often, stockholders who suspect corporate wrongdoing in connection with M&A transactions demand to inspect the company’s books and records under Section...more

Goldberg Segalla

Final Judgment and Imposition of Sanctions Affirmed Against Automotive Defendant

Goldberg Segalla on

Superior Court of New Jersey, Appellate Division, March 24, 2022 In this asbestos action, Deborah Marino (the plaintiff) alleged that her mother, Anita Creutzberger (the decedent), developed peritoneal mesothelioma from the...more

Morris James LLP

Chancery Finds Former Directors Bringing Wrongful Termination Claims Were Not Entitled to all Privileged Communications During...

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SerVaas v. Ford Smart Mobility LLC, C.A. No. 2020-0909-LWW (Del. Ch. Nov. 9, 2021) - With limited exceptions, directors normally have “unfettered” access to corporate information. This decision indicates, however, that the...more

Morris James LLP

Chancery Declines to Order Production of Privileged Document

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Drachman v. BioDelivery Sciences International, Inc., C.A. No. 2019-0728-LWW (Del. Ch. Aug. 25, 2021) - Drachman addresses the attorney-client privilege, certain exceptions thereto, including the Garner doctrine, and...more

Morris James LLP

Chancery Addresses Common Interest and Privilege Log Issues in Matter Involving Special Discovery Matter

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Buttonwood Tree Value Partner, L.P. v. R.L. Polk & Co., Inc., et al., C.A. No. 9250-VCG (Del Ch. Jul. 30, 2021) - With increasing frequency, the Court of Chancery is appointing Special Discovery Masters and Discovery...more

Goodwin

Northern District of California Kicks Shareholder Derivative Suit Against Alphabet, Inc. for Failing to Allege Demand Futility

Goodwin on

Northern District of California Kicks Shareholder Derivative Suit Against Alphabet, Inc. For Failing to Allege Demand Futility; Rare Securities “Holder’s Claim” Trial Results in Jury Verdict for Defendants; Delaware Court of...more

Goodwin

SCOTUS Grants Certiorari to Decide Whether Automatic Discovery Stay Applies to Securities Act Cases in State Court

Goodwin on

SCOTUS Grants Certiorari to Decide Whether Automatic Discovery Stay Applies to Securities Act Cases in State Court; Delaware Court of Chancery Dismisses Stockholder Suit Against FedEx for Failure to Make Pre-Litigation...more

Hinshaw & Culbertson - Lawyers for the...

Georgia Malpractice Judgment Reversed Because Trial Court Improperly Allowed Jury to View Complaint With Dismissed Claims

A Georgia appellate court held that plaintiff's nearly $6 million damage award was improper because the trial court permitted the jury to view a copy of the complaint which included allegations and claims that had been...more

Hinshaw & Culbertson LLP

The LHD/ERISA Advisor – June 2021: Court Blocks Plaintiff's Attempt to Conduct Discovery Into Claim Review History of Medical...

In Adkins v. Life Insurance Company of North America, 2021 U.S. Dist. LEXIS 37847 (E.D. Wash., March 1, 2021), a Washington district court blocked a plaintiff’s attempt to conduct discovery into the claim review history of an...more

Morris James LLP

Chancery Holds That Management Does Not Have Unilateral Authority to Preclude a Director From Obtaining the Company’s Privileged...

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In Re WeWork Litig., Consol. C.A. No. 2020-0258-AGB (Del. Ch. Aug. 21, 2020) - In October 2019, The We Company’s (the “Company”) board of directors established a special committee (the “Special Committee”) to evaluate a...more

Morris James LLP

Chancery Denies Derivative Plaintiff’s Motion to Compel Work Product Prepared by Oracle’s Special Litigation Committee

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In re Oracle Corp. Derivative Litig., C.A. No. 2017-0337-SG (Del. Ch. July 9, 2020) - After investigating certain potential derivative claims arising out of Oracle Corporation’s acquisition of NetSuite, Inc., and after...more

Rivkin Radler LLP

Employee Relations Law Journal – From the Courts

Rivkin Radler LLP on

North Carolina District Court Permits Plan’s Lawsuit Against Third Party Administrator to Continue A federal district court in North Carolina has ruled that a plan subject to the Employee Retirement Income Security Act of...more

Littler

Second Circuit Rules ERISA Plan Can Be Reformed Absent Any Mistakes, Fraud or Other Inequitable Conduct

Littler on

The Second Circuit recently considered for the first time whether the equitable remedy of reformation was available under the Employee Retirement Income Security Act (ERISA) where a court determined that the written terms of...more

Winstead PC

The Texas Legislature Has Limited Discovery Of A Defendant’s Net Worth For Exemplary Damage Claims

Winstead PC on

Plaintiffs in civil litigation often seek punitive or exemplary damages. “Exemplary damages” means any damages awarded as a penalty or by way of punishment but not for compensatory purposes....more

Skadden, Arps, Slate, Meagher & Flom LLP

Key Developments in Delaware Corporation Law

Consistent with trends in recent years, in 2019 Delaware corporation law largely was shaped by post-closing suits for money damages against directors who had approved mergers and acquisitions. Two Delaware Supreme Court...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Trends in Books and Records Litigation

Recently, the frequency of stockholder demands to inspect corporate books and records pursuant to Section 220 of the Delaware General Corporation Law has increased. In turn, the case law concerning Section 220 demands is...more

Winstead PC

Texas Court Grants Mandamus Relief To Protect A Trustee’s Attorney-Client Communications From Being Disclosed To A Beneficiary

Winstead PC on

In In re Alexander, a beneficiary filed suit against the trustee based on multiple allegations of breach of fiduciary duty, including an allegation that the trustee attempted to transfer the trustee position to successors in...more

Bass, Berry & Sims PLC

Chris Lazarini Examines Allegations of ERISA Fiduciary Violations

Bass, Berry & Sims attorney Chris Lazarini examined allegations brought by members of a company’s 403(b) retirement savings plan that the plan fiduciaries violated their duties by selecting and failing to replace higher-cost...more

Troutman Pepper

Pennsylvania Appellate Court Affirms Homeowner’s Recovery Against Developer on Tort Claims, Despite Contract and Challenges Based...

Troutman Pepper on

Dolan v. Hurd Millwork Co., No. 2951 EDA 2015, 2019 BL 229344 (Pa. Super. Ct. June 21, 2019) - This cases arises out of defective windows installed in a residential construction project. In 1999, Leo J. Dolan purchased a...more

A&O Shearman

Delaware Court Of Chancery Again Dismisses Aiding And Abetting Claims For Pleading Deficiencies

A&O Shearman on

On July 15, 2019, Vice Chancellor Joseph R. Slights III of the Delaware Court of Chancery dismissed an aiding and abetting claim asserted against a private equity buyer and its principals in a stockholder class action...more

Seyfarth Shaw LLP

The Third Circuit Carries On The Judicial Debate Over The Level Of Specificity Needed In An ERISA Fee Complaint

Seyfarth Shaw LLP on

Synopsis: A new Third Circuit decision has allowed an ERISA fee complaint to stand even though there were no specific allegations of fiduciary errors in the process of selecting investment options and fees. ...more

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