Cargill, Inc. v. JWH Special Circumstance, LLC

Opinion in Cargill, Inc. v. JWH Special Circumstance, LLC


The Delaware Chancery Court decision involving a Delaware statutory trust (formerly known as a business trust) found that common law fiduciary duties would apply to a trustee as a default rule in light of the agreement among the parties being silent on the issue.

The case was brought by a representative of a trust which suffered significant losses as a result of the REFCO collapse.

The trust’s representative claims the managing owner violated its fiduciary duties to the trust, and that the managing owner’s parent and grandparent are liable, directly or indirectly, for exercising control over or aiding and abetting the managing owner’s actions to serve their own self-interest. The parent and grandparent filed the complaint in this action seeking a declaratory judgment of no liability. The trust counterclaimed. The parent and grandparent moved to dismiss the counterclaim and for judgment on the pleadings in their favor.

The court denied those motions in all respects.

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Reference Info:Decision | State, 3rd Circuit, Delaware | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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