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Vicarious Liability Fraud

Lathrop GPM

The Franchise Memorandum - Issue # 265

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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more

BCLP

Recent Hong Kong Court decision on a bank’s liability on its employee’s fraudulent conducts

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What happens when a Bank’s customer loses money due to a fraud perpetrated by an employee of the Bank? What, if any, remedies does the defrauded customer have against the Bank?...more

BCLP

Corporate Criminal Liability in the UK: A new era is coming...isn’t it?

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“It has no soul to be damned and no body to be kicked”. How, then, can a company be held criminally liable? Various jurisdictions have grappled with this question and recent developments in the UK have increased the...more

Morris James LLP

Chancery Provides Guidance on Agency and Joint Venture Theories of Vicarious Liability

Morris James LLP on

Otto Candies, LLC v. KPMG, LLP, C.A. No. 2018-0435-MTZ (Del. Ch. Aug. 21, 2020) - The Court of Chancery dismissed a complaint filed by creditors and former business affiliates of a defunct Latin American offshore oil...more

Foley & Lardner LLP

Delaware Affirms Limitation of Vicarious Liability Within Global Networks

Foley & Lardner LLP on

In a win for the accounting profession and other member firm networks, the Delaware Court of Chancery clarified the limits of vicarious liability within such networks. On August 21, 2020, the Court held in Otto Candies, LLC...more

Latham & Watkins LLP

For Fear of Learning an Inconvenient Truth: Third-Party Liability in Fraudulent Trading

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Parties within a chain of transactions may face liability for dishonesty and assistance, even if they do not have actual knowledge of fraud. The recent judgment in Bilta (UK) Limited (in liquidation) & ors v. NatWest...more

A&O Shearman

No vicarious liability for fraudulent financial adviser using company online portal

A&O Shearman on

No vicarious liability arises for a company where one of its agents perpetrates a fraud in the course of a recognisably independent business. This applies even where, to facilitate the fraud, the agent uses an online portal...more

Lewitt Hackman

FRANCHISOR 101: Liability as Certain as Death & Taxes

Lewitt Hackman on

Structuring a franchise to reduce risk of joint employment and vicarious liability means limiting a franchisor's control over franchisees. This is a challenge in a professional services franchise, where the brand is...more

BakerHostetler

Third Circuit Holds Rule 10b-5 Violations May Be Imputed to Investment Management Company on Basis of Apparent Agency

BakerHostetler on

The United States Court of Appeals for the Third Circuit recently issued a decision that highlights the importance of investment management companies using extreme caution when promoting investment products to their clients,...more

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