The Delaware Chancery Court found that a co-founder of an apparel business had breached his duty of loyalty by misappropriating assets entrusted to his management and supervision. The claim was brought against the co-founder after he started a competing business. The court's decision was based on the doctrine of corporate opportunity. This doctrine provides that a corporate officer or director may not take a business opportunity for his own if: (i) the corporation is financially able to exploit it; (ii) the opportunity is within the corporation's line of business; (iii) the corporation has an interest or expectancy in the opportunity; and (iv) by taking the opportunity for his own, the corporate fiduciary will thereby be placed in a position antithetical to his duties to the corporation.
Dweck v. Nasser, C.A. No. 1353-VCL (Del. Ch. Jan. 18,2012)