Friday, November 14, 2014

Massachusetts Court Addresses Contractual versus Fiduciary Obligations


Massachusetts Court Addresses Contractual versus Fiduciary Obligations

 

In a recent decision, a Massachusetts court discussed the treatment of claim that involves breach of contract and which, absent a contract, would be a breach of fiduciary duty.  The court found that the contract controls, and that there is not a separate action for breach of fiduciary duty.  In effect, where the terms of the contract fully encompass the alleged improper activity (in this case investment in a competitor), the contract controls.  Gatof v. Northland Investment Corp., 2014 WL 5819364 (Sup. Ct. Mass. Oct. 20, 2014).

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