Wednesday, January 6, 2016

More on Liberty Rehabilitation v. Waide


More on Liberty Rehabilitation v. Waide

      In late December, I reported on the jury verdict in Liberty Rehabilitation v Waide, wherein a jury determined that the majority shareholder of a corporation had breached his fiduciary duties by using company assets for personal obligations, including (in violation of the Campaign-Finance Rules) financing his own re-election bid to the Kentucky General Assembly. HERE IS A LINK to that posting.
       When I wrote that initial posting, I was unaware whether an appeal had been filed.  I have since learned that (a) no appeal was filed and (b) the defendant Waide, undoubtedly in an effort to avoid having to satisfy the judgment, has filed for personal bankruptcy.
        One question will now be whether a breach of fiduciary duty such as was here found to have taken place will constitute such a defalcation of fiduciary duties to preclude discharge in bankruptcy.

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