Francis Pileggi and Kevin Brady Discuss the Delaware Court of Chancery’s Recent Rulings in Auriga Capital Corp. v. Gatz Properties

Francis Pileggi and Kevin Brady of Eckert Seamans discuss several aspects of recent rulings by the Delaware Court of Chancery in Auriga Capital Corp. v. Gatz Properties LLC, C.A. No. 4390-CS (Del. Ch., Jan. 27, 2012).

On the Delaware Corporate and Commercial Litigation Blog, they write that the case establishes a high-water mark in terms of providing the most comprehensive explanation to explain why the default standard in the LLC context is that fiduciary duty principles will apply to managers of an LLC unless those duties are expressly and clearly limited or eliminated in an LLC agreement.

Francis Pileggi explains why this is an important decision:

 

Francis reviews the background of the case:

 

The court imposed attorneys' fees, in part due to the failure to preserve electronically stored information.  Kevin Brady emphasizes the importance of proper document collection:

 

Kevin says be prepared to submit your bills if you contemplate challenging the reasonableness of the attorney fee petition:

 

For more information about LexisNexis products and solutions connect with us through our corporate site.