Kentucky Supreme Court Passes on Reviewing Holding That Shareholders Do Not Owe One Another Fiduciary Obligations

Kentucky Supreme Court Passes on Reviewing Holding That Shareholders Do Not Owe One Another Fiduciary Obligations

      As previously reviewed (HERE ISA LINK to that posting), the Kentucky Court of Appeals has held that shareholders in a corporation, in their capacity as shareholders, do not stand in a fiduciary relationship with one another. See Conlon v. Haise, No. 2014-CA-001581-MR, 2016 WL 5485531 (Ky. App. Sept. 30, 2016).

      After this decision was handed down, the plaintiff (Conlon) sought review and reversal of this decision by the Kentucky Supreme Court. Last Friday the Kentucky Supreme Court issued its ruling that it would not be reviewing the decision. While it did direct that the decision of the Court of Appeals not be published, as this is the only point decision of a Kentucky court, it may be cited as precedent.