Tag Archives: Breach of Fiduciary Duty and Business Torts
Specially trained employees are a valuable commodity in the business world, so keeping these skilled employees is of the utmost importance to employers. Many people have a skewed perspective of non-compete clauses as being unfair to the employee against whom … Read Full Post
Business Judgment Rule – Shielding The Corporate Director From Personal Liability And Considerations Of Efficient And Financially Reasonable Resolutions
The business judgment rule shields corporate directors from personal liability. However, directors must not breach the fiduciary duties owed to the corporation. Under Florida law, corporate directors owe fiduciary duties to the corporation and its shareholders, which requires good faith, … Read Full Post
Been Caught Stealing: Expelling Or “Kicking Out” Members From Florida Limited Liability Companies When A Member Is Diverting Assets
Though Florida was one of the first states to enact legislation permitting the organization of limited liability companies (“LLC”), usage of LLCs as a corporate form is still a relatively new concept. With the Florida Limited Liability Company Act of … Read Full Post
One of the biggest legal mysteries for non-lawyers, even for experienced and sophisticated businesspeople, is the process of arbitration. The term gets used a lot, but few actually know what the process entails, and most people are usually apprehensive about … Read Full Post
The litigation privilege is a broad and absolute rule, but easy to misunderstand. Therefore, review of pertinent cases in Florida can provide some clarity on when it protects certain actions. In this video presentation recorded by Adam B. Edgecombe, he … Read Full Post
I initially wrote an Overview of Florida Law on Punitive Damages Claims in Business or Commercial Litigation a few years’ ago. This article is meant to build upon the information provided in my initial article. In Federal Court, there is no requirement to proffer evidence of punitive damages prior to seeking financial net worth discovery. It is really important to understand this concept because in Federal Court it is much more difficult to prevent financial discovery then in State Court. Read Full Post
When a real estate transaction fails to close, there are a multitude of legal issues that arise for the buyer, seller, and real estate broker. Often times the buyer’s earnest money binder or “deposit” is being held by a third party escrow agent. Both the buyer and seller are making conflicting claims to the binder. Section 475.25(1)(d)1., Florida Statutes, sets for the statutory procedure that real estate professionals should follow in the event of conflicting binder claims. Remember that real estate agents and brokers are regulated by the Florida Department of Business and Professional Regulation so they must follow some specific procedures in the event of a binder dispute. These procedure are outlined generally by Florida Realtors® and include seeking an Escrow Disbursement Order, Arbitration, Mediation or Interpleader. This blog will focus on the use of Interpleader Actions for escrow binder disputes in Florida. Read Full Post
When the Florida Supreme Court wrote the Tiara Condominium opinion the legal community was unsure what the opinion meant. Tiara Condominium Association, Inc. v. Marsh & McLennan Companies, Inc,., 110 So.3d 399 (Fla. 2013). The opinion clearly states that the economic loss doctrine is applicable only in the context of premises liability cases. However, did Tiara Condominium also eliminate the contractual privity economic loss rule, which was sometimes referred to as the independent tort doctrine? There still is not absolute clarity on this topic but the reasoned decision is that the independent tort doctrine preceded the economic loss rule and is not abolished by Tiara Condominium. Read Full Post
We are often asked by clients who contact us in corporate disputes how they can maximize value when they are a minority interest holder of an Limited Liability Company when the LLC operating agreement authorizes the Board, at its discretion, to repurchase a member’s interest at book value? In short, there are primarily two approaches to reach a fair value determination of the minority’s membership interest: (1) request equitable relief on the basis of a fiduciary breach claim, or (2) request equitable relief from minority oppression. Read Full Post
When Does a Standard Lender-Borrower Relationship Become a Fiduciary Relationship Imposing Extra Fiduciary Duties?
By: Charles B. Jimerson, Esq.
In order to state a cause of action in Florida for breach of fiduciary duty, there must exist a fiduciary duty, a breach thereof, and resulting damages. Gracey v. Eaker, 837 So. 2d 348,353 (Fla. 2002). In Doe v. Evans, 814 So.2d 370 (Fla. 2002), a fiduciary relationship was characterized as follows:
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