Del. High Court Finds Golf Deal Breached Manager's LLC Duties

Law360, Wilmington (November 7, 2012, 10:29 PM EST) -- The Delaware Supreme Court on Wednesday affirmed a ruling that the manager of a limited-liability company had breached fiduciary duties implicit in its LLC agreement in a deal for a golf course, but rejected a trial judge's pronouncement that the state's Limited Liability Company Act imposes “default” fiduciary duties upon LLC managers.

The high court found that Chancellor Leo E. Strine Jr. ruled correctly in finding William Gatz and Gatz Properties Inc.— the manager and majority owner of Peconic Bay LLC — liable for a fraud...
To view the full article, register now.