Court Of Chancery Explains Corporate Opportunity Doctrine

In Re MobilActive Media LLC, C.A. 5725-VCP (January 25, 2013)

This is an essential decision for anyone dealing with the corporate opportunity doctrine.  Under that doctrine, a fiduciary who takes an opportunity that might have been instead given to his corporation (or LLC or LLP) is liable for any gain made by him as a result.  One prime defense to such a claim is that the entity lacked the means to develop  the opportunity itself and thus suffered no real harm when it lost that opportunity.  This decision significantly undercuts that defense.

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