Fiduciary Duties Stand Firm In LLC Pacts: Del. Court

Law360, New York (February 1, 2012, 4:26 PM EST) -- The Delaware Chancery Court on Friday affirmed that fiduciary duties are implicit in limited liability company agreements, finding that the manager of an LLC that owned a golf course trampled the rights of Auriga Capital Corp. and other equity investors in a scheme to buy back the property on the cheap.

Chancellor Leo Strine Jr. determined that the Limited Liability Company Act’s default fiduciary duties apply to Gatz Properties Inc., the manager and majority owner of Peconic Bay LLC, making Gatz liable for cheating minority partners...
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