Fayes, Inc. v. Kline

WEINFELD, District Judge.

The plaintiff, Fayes, Inc., charges that the defendant, J. Jay Kline, its president and director, violated his fiduciary duty to the plaintiff in that he misappropriated a valuable .corporate opportunity, to wit, the expectancy of renewal of its existing lease; and further misappropriated all its remaining assets, consisting of an inventory and fixtures.

It is, of course, a fundamental principle that directors and officers of a corporation occupy a fiduciary relationship to the corporation and its stockholders and must act in the utmost good faith in managing corporate…