A mortgage broker has a fiduciary duty to his client. Plaintiffs’ claims that they were charged excessive fees survived a motion to dismiss, as the Court could not determine whether various charges were interest, so as to be usurious, or permissible "finance charges." The Court deferred dermining whether purchasers of mortgage loans were holders in
Fiduciary Duties
Oberlin Capital, L.P. v. Slavin, 2000 NCBC 6 (N.C. Super. Ct. )(Tennille), aff’d in part and rev’d in part, 147 N.C. App. 52, 554 S.E.2d 840 (2001)
By Mack Sperling on
Posted in Fiduciary Duties
A director cannot be liable, solely because of his or her capacity as a director, for the wrongdoing of others associated with the corporation in the absence of his or her own participation in the alleged wrong. The duties of a director run directly to the corporation, indirectly to shareholders, and not to creditors, so…
Smith v. NC Motor Speedway, 1997 NCBC 5 (N.C. Super. Ct. Nov. 12, 1997)(Tennille), aff’d, 132 N.C.App. 132, 516 S.E.2d 921, disc. rev. denied, 350 N.C. 310, 534 S.E.2d 596 (1999)
By Mack Sperling on
Posted in Fiduciary Duties, Mergers
A majority shareholder has no fiduciary duty to minority shareholders to "auction off" the company or otherwise obtain the highest possible value for their interests once the majority shareholder decides to sell its controlling interest or engage in a cash out merger. The duties of a shareholder are distinct from those of a director under…
Reeve and Assocs., Inc. v. UCB, 1997 NCBC 2 (N.C. Super. Ct. Oct. 6, 1997)(Tennille)
By Mack Sperling on
A senior lienholder had no fiduciary duty to a junior lienholder. The mere fact that the senior lienholder took action to cause its debt to be paid down did not establish domination and control of the debtor’s business so as to give rise to a fiduciary duty. The senior lienholder’s efforts to collect its debt…