News & Analysis as of

Breach of Duty Good Faith

Adams and Reese LLP

New Legislation Takes Aim at Fixing Louisiana’s “Insurance Crisis”

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Affordability and availability of homeowners insurance in Louisiana was top of mind for lawmakers in the 2024 regular legislative session, and several bills have crossed the finish line, recently signed into law by Gov. Jeff...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

Blake, Cassels & Graydon LLP

Cour d’appel de l’Ontario : Une perte ne peut être présumée par suite d’un manquement à l’obligation d’exécution honnête

Dans l’affaire Bhatnagar v Cresco Labs Inc (l’« affaire Bhatnagar »), la Cour d’appel de l’Ontario (la « CAO ») a statué qu’il ne peut être présumé que des dommages-intérêts seront attribués lorsqu’un défendeur a manqué à son...more

Blake, Cassels & Graydon LLP

No Loss, No Foul: Ontario Court of Appeal Clarifies That Loss Will Not Be Presumed From a Breach of the Duty of Honest Contractual...

In Bhatnagar v. Cresco Labs Inc. (Bhatnagar), the Court of Appeal for Ontario (Court) held that damages are not presumed where a defendant breaches the duty of honest contractual performance. Rather, according to the Court,...more

Morrison & Foerster LLP

What Fiduciary Duties Do I Have as a Director of a Delaware Corporation?

You’re an entrepreneur, you form your first company, and suddenly you carry the title of founder, director, officer, and/or employee all at once. When running your business, it may feel like all of your roles blur together....more

BCLP

High Court dismisses green strategy derivative claim against Shell’s directors

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In February 2023 ClientEarth issued a derivative action against Shell’s 11 directors. ClientEarth alleged that the directors had breached their duties under the Companies Act 2006 (CA 2006) by failing to adopt and implement...more

Dechert LLP

Delaware Court of Chancery Offers Guidance on Enforceability of Contractual Waivers Not to Sue for Breach of Fiduciary Duty

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Delaware Court of Chancery holds contractual waivers of fiduciary duties are facially valid when they are both narrowly tailored to authorize specific transactions and satisfy the Court’s review for reasonableness. Court...more

A&O Shearman

The last word on good faith?

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Last autumn, the Court of Appeal held that actions taken by majority shareholders of a company, asking directors to resign, were not unfairly prejudicial to the minority shareholders. In doing so, the court made some...more

ArentFox Schiff

Claims Narrowed in Jack Nicklaus Non-Competition Case Over IP Sale

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On April 12, 2023, a Manhattan judge in the lawsuit regarding the sale of golf legend Jack Nicklaus’s intellectual property portfolio narrowed the claims against Nicklaus. In 2007, Nicklaus sold his intellectual property...more

Dechert LLP

Delaware Court of Chancery Issues Significant Decision Addressing Fiduciary Duties of Officers, Including Holding that Officers...

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Corporate officers owe the same fiduciary duty of oversight as directors. Just as with directors, officers fulfill their oversight duty by acting in good faith....more

Conyers

Directors’ Duties on the Precipice of Insolvency: Brief Overview of BTI 2014 LLC v Sequana SA

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The United Kingdom Supreme Court (the “UKSC”) recently delivered its eagerly anticipated judgment in BTI 2014 LLC v Sequana SA and others [2022 UKSC 25] (“Sequana”). The reasoning in Sequana will be highly persuasive in the...more

Wiley Rein LLP

Insurer’s Declaratory Judgment Complaint Plausibly Alleges Violation of Cooperation Clause at Motion to Dismiss Phase

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The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer’s complaint plausibly alleged that the insured had breached the terms of the policy’s cooperation clause....more

Smith Gambrell Russell

A Century Later: Implied Duty of Good Faith and Fair Dealing Still Going Strong

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Parties to construction contracts are often surprised to learn that they are bound to implied unwritten contract obligations in addition to the written terms of their contracts. Courts in the United States began to...more

Benesch

Shareholders Seek to Hold Current and Former SolarWinds Officials Liable for Massive 2020 Security Breach

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Investors filed a derivative suit claiming that the company knew about, and failed to mitigate known, existing cybersecurity risks and shortfalls prior to the security breach. In early November, pension funds and...more

Downey Brand LLP

Britney Spears and “Marla Grayson” May Propel Tightened Oversight Over California Conservators

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When a California probate court establishes a conservatorship, the conservator is charged with managing the conservatee’s person and/or estate in the conservatee’s best interests. The large majority of professional...more

White and Williams LLP

District of New Jersey Court Clarifies Primary Insurer’s Duty of Good Faith to Excess Insurer

A primary insurer has a duty of good faith to an excess insurer to attempt to negotiate a settlement with a third-party claimant within the primary insurer’s limits. However, determining whether that duty of good faith was...more

Littler

Supreme Court of Canada Clarifies Duty to Exercise Contractual Discretion in Good Faith

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In 2020, the Supreme Court of Canada (SCC) heard arguments in Wastech Services Ltd. v. Greater Toronto Sewage and Drainage District, 2021 SCC 7 (Wastech) and C.M. Callow Inc. v. Zollinger, 2020 SCC 45 (Callow), both of which...more

Blake, Cassels & Graydon LLP

La Cour suprême du Canada reconnaît l’obligation de bonne foi dans l’exercice d’un pouvoir discrétionnaire contractuel

Dans l’arrêt qu’elle a rendu dans l’affaire Wastech Services Ltd. c. Greater Vancouver Sewerage and Drainage (l’« affaire Wastech »), la Cour suprême du Canada (la « Cour suprême ») a reconnu l’obligation générale d’exercer...more

Blake, Cassels & Graydon LLP

Supreme Court of Canada Recognizes Duty of Good Faith in Exercise of Contractual Discretion

In Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage (Wastech), the Supreme Court of Canada (SCC) recognized a general duty to exercise contractual discretion in good faith. This bulletin summarizes the SCC’s...more

Goodwin

Talking The Talk Versus Walking The Walk: Shareholder Suits Aim To Push Board Diversity And Punish Companies Supposedly Failing To...

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A lot of attention has been paid to board diversity – or lack thereof – in recent months. California enacted AB-979, which expanded upon California’s earlier gender diversity law and requires boards to make strides in other...more

Goodwin

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits

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California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits; California District Court Dismisses Fraud-Related Claims Against AT&T; Third Circuit Holds Challenge to SEC’s Decision to...more

Patton Sullivan Brodehl LLP

LLC Managers or Members With “Sole Discretion” Must Still Act in Good Faith

LLC managers (or members vested with decision-making authority) are sometimes lulled into a false sense of security by “sole discretion” provisions in their LLC’s operating agreement.  That can be a costly mistake....more

White & Case LLP

2019 Half-year in review: M&A legal and market developments

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We set out in the attached Newsletter a number of interesting English court decisions and market developments which have taken place in the second half of 2019 and their impact on M&A transactions. This review looks at these...more

The Volkov Law Group

Delaware Court Increases Scrutiny of Corporate Board Oversight and Monitoring of Compliance Programs

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On October 1, 2019, in In re Clovis Oncology, Inc. Derivative Litigation, a Delaware Chancery Court denied a motion to dismiss the plaintiffs’ claims under the Caremark decision against individual directors for failing to...more

Troutman Pepper

Delaware Supreme Court Issues Guidance On Board Oversight Responsibilities

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A director’s duty to make a good faith effort to oversee the operations and management of a Delaware company is well-established. In a recent case, Marchand v. Barnhill, the Delaware Supreme Court provided guidance to boards...more

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