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: Delaware Business Litigation ReportCourt of Chancery Limits Turning Contracts Into Fiduciary Duties
By Morris James LLP
Nemec v. Shrader, C.A. 3878-CC (April 30, 2009)
A contract right does not create a fiduciary duty. Here the plainitffs had a contract that gave their former employer the right to buy back company stock at book value. The employer did so on the eve of a big transaction, greatly increasing the company's book value. The Court held that plaintffs' contract did not give them the right to insist that the company hold off on stock redemption until the big deal was done.
Full post as published by Delaware Business Litigation Report on April 30, 2009 (boomark / email).
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