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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