Delaware Business Litigation Report
Court Of Chancery Explains Corporate Opportunity Doctrine
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.