Officer, Director & Fiduciary Litigation

Though many believe that the existence of a corporation or other business entity shields its officers, directors, and managers from liability, that is not always the case. Persons in charge of business entities owe certain fiduciary duties to the entity and, in some circumstances, to the creditors of the entity. When a corporate entity is in the "zone of insolvency," officers owe certain duties to creditors of the corporate entity. This duty to creditors helps prevent officers, directors, and owners from denuding the corporation when it is insolvent instead of paying creditors. Moreover, officers and directors are liable for the tortious acts and omissions that they personally commit or in which they participate.

When officers and directors fail to act in accordance with their duties to the corporation and creditors, litigation claims for breach of fiduciary duty, gross negligence, alter ego, fraudulent transfer, and veil piercing often come into play. Moreover, in many situations, it is more than one individual acting inappropriately, leading to claims for civil conspiracy, aiding and abetting, and occasionally violations of the RICO act.

Fiduciary duties also arise in express trust situations. These can include bank trustees, bankruptcy trustees, partners, and executors.

Snow Spence Green LLP has significant experience in prosecuting and defending parties in officer, director, and fiduciary litigation.