A fiduciary’s liabilities can sometimes arise in unexpected contexts. A recent decision involving an estate tax liability held that a fiduciary was personally liable for unpaid estate taxes. In Carroll v. United States, 2009-2 USTC ¶ 60,577 (N.D. Ala. 2009), the taxpayer was denied a bankruptcy discharge for unpaid estate taxes arising from the estate …
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Some commentators view fiduciary duties through a contractual framework. Judge Frank Easterbrook and Professor Fischel state, “The fiduciary principle is fundamentally a standard term in the contract. Fiduciary duties are not special duties; they have no moral footing; they are the same sort of obligations, derived and enforced in the same way, as other contractual …
This is the third part of a review of Mary Szto’s article, “Limited Liability Company Morality: Fiduciary Duties in Historical Context,” 23 Quinnipiac Law Review 61 (2004-2005). This week we get to the heart of the matter – the case law summary. The author starts by explaining that, “In the Anglo-American tradition, principals of a …
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I attended the 2009 annual American Agricultural Law Association conference in Williamsburg, Virginia. The lunch speaker on September 25th was Tom Vilsack, the Secretary of Agriculture. He’s a good speaker: he measures his words carefully and is a smart guy. Mr. Vilsack spent a couple of hours with us and took questions at the end. …
This is part two of a discussion of an intriguing law review article on fiduciary duties as applied in the context of limited liability companies. The prior blog considered the theological roots cited by Ms. Szto. This part examines other roots for fiduciary duties. Ms. Szto starts again with a religious analysis. Says she, “Canon …
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Legal commentators have differing opinions regarding the origin and background of fiduciary duties. A recent article by Mary Szto would seem to focus on the business side of things, as her article is entitled “Limited Liability Company Morality: Fiduciary Duties in Historical Context,” 23 Quinnipiac Law Review 61 (2004-2005). However, the author strikes a deep …
In a June 2009 decision from New York’s highest court, the Court of Appeals held that attorneys for a hedge fund did not owe fiduciary duties to the investors. The hedge fund in question was structured as a limited partnership, and the investors were limited partners. When the investment turned sour, the investors sued, claiming …
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