Recently, the Delaware Court of Chancery issued a ruling
on the question of whether a manager (or managing member) of a Delaware limited
liability company owes fiduciary duties to the company and its members.
The court ruled that it does.
As a legal practitioner, this result is unsurprising.
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,
On the Delaware Corporate and Commercial Litigation Blog , they
write that the case...
There has been a back and forth between the Chancery Court and the Delaware
Supreme Court about whether there are default fiduciary duties for LLCs.
The Chancery Court takes the position that there are default fiduciary
duties, though you may contract around them. The Supreme Court on the
Quadrant Structured Products Company, Ltd. v. Vertin , C.A. No. 6990-VCL (Del. Ch. May 4, 2015) [ an enhanced version of this opinion is available to lexis.com subscribers ].
This Court of Chancery opinion is destined to be cited as a seminal ruling for its historical and doctrinal analysis of important...