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Category: Business, Corporate

Corporate Officer-Director Duties, Post Employment Responsibilities

Officers and directors of a corporation occupy a fiduciary position in relation to the corporation and its shareholders. The position is one of trust and officer and directors are obligated to act with fidelity and must subordinate their personal interest to the interest of the corporation should there be a conflict. Johnson v. Duensing, 351 S.W.2d […]

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Drag-Along Rights and Tag-Along Rights

When starting any type of business with multiple owners (whether it be a limited liability company, corporation, partnership, etc.) it is important to include provisions relating to the sale of the business to a third-party purchaser. These types of provisions are especially important if the owners ultimately intend to sell the business to someone else. […]

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Personal Liability from a Business Debt

There are certain circumstances in which a business liability can flow through and result in personal liability to a business owner. Missouri law permits a court to “pierce the corporate veil” and make an owner liable for a business debt when the following is shown:  (1) There is control and complete domination, not only of […]

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Special Circumstances Exception to Attorney Fees

There are exceptions to the general rule that a party/litigant must cover its attorney fees in litigation regardless of the outcome. The exceptions are when (1) fees are authorized by statute or contract, (2) very unusual circumstances exist so it may be said equity demands a balance of benefits, (3) the fees result from an […]

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Third-Party Beneficiary Contracts

While it may seem counter-intuitive and illogical, it is possible for a third-party to a contract (i.e., a non-signer) to sue one of the parties to the contract for breach of contract. A third party beneficiary to a contract is one who is not privy to a contract or its consideration but who may still […]

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Computer Tampering, Trade Secrets

One common area of business disputes is to what extent non-compete, non-solicitation and confidentiality provisions are enforceable and valid when an employee leaves an employer. Related disputes pertaining to whether an employee breaches his or her duty of loyalty by going beyond merely preparing to leave and engages in direct competition are also common. This […]

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Breach of Fiduciary Duty and Compensation Forfeiture

A breach of fiduciary duty occurs when an individual or entity fails to follow his, her or its fiduciary obligations. More often than not, it is used by a plaintiff as a legal basis for damages against someone who breaches his or her fiduciary duty (e.g., failure to manage property,  misappropriation of funds, etc.). It […]

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LLC Derivative Action Attorney Fees

A derivative action in limited liability company (“LLC”) litigation is generally when a member (i.e., owner) brings an action against the manager or managing member for causing a loss to the LLC. The action is “derivative” in that the member is suing on behalf of the LLC to recover an injury that the LLC sustained. […]

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Ultra Vires Actions, Corporate & Business Litigation

There’s a general principle in corporate and business litigation — the “business judgment rule” — which generally means that courts will not interfere in the management of the internal affairs of a corporation. Golden v. St. Joseph Milke Producers’ Association, 420 S.W.2d 31, 33 (Mo. Ct. App. 1967). For the Court to intervene, there must be […]

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Trade Secret Disputes, Damages, Misappropriation

Trade secret litigation (often used interchangeably with confidential information) usually centers on an individual misappropriating and/or unfairly using a businesses trade secret to the detriment of a business. A “trade secret” can include “any formula, pattern, device or compilation of information which is used in one’s business, and which gives him an opportunity to obtain […]

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