A Tennessee district court recently ruled that a directed trustee may seek indemnification from a retirement plans internal fiduciaries if that trustee is liable for alleged losses in investment funds it recommended.
On March 9, the U.S. Supreme Court granted certiorari in Jones v. Harris Associates L.P., 527 F.3d 627 (7th Cir. 2008).
On February 12, 2009, the U.S. Court of Appeals for the Seventh Circuit issued its opinion in Hecker v. Deere & Co.
Plaintiff, the trustee of the Chapter 7 estate of Security Asset Capital Corporation (SACC), a corporate debtor, brought an action against the debtor’s officers and directors, alleging that they breached their fiduciary duties by failing to commence Chapter 7 liquidation once SACC became insolvent.
The District Court for the Southern District of New York dismissed both derivative and direct causes of action asserted against the trustees of an investment company organized as a business trust (the Trust) under Massachusetts law.