A recent issue of Massachusetts Lawyers Weekly features discussion with Steve Riden in an article titled “Door opened to surcharge against breaching fiduciary.”
The article covers a decision by the Supreme Judicial Court concerning the availability of “surcharge” as an equitable remedy in claims for breach of fiduciary duty in the context of a close corporation dispute. The decision was entered in the case titled Tocci v. Tocci.
The decision addresses a situation involving a dispute among family members in a close corporation. One family member was accused of diverting money from the company for his own benefit. The SJC ruled that, as a general matter, a surcharge may be used to award a plaintiff the costs of attorney’s fees in a close corporation dispute when the plaintiff asserts a claim on behalf of the corporation against a fiduciary for breach of the duty of loyalty. This was the first time the SJC affirmed the use of surcharge in this context.
In the article, Steve Riden is quoted as follows:
Boston attorney Stephen D. Riden said he also takes a broader lesson from the SJC’s decision in Tocci.
“It reminds litigants that they can be creative when they ask for equitable relief,” Riden said. “Just because something has not been done before in Massachusetts does not mean it is not available to you.”
The article is by Massachusetts Lawyers Weekly’s reporter, Kris Olson.
Steve has substantial experience representing owners involved in intra-corporate disputes, including shareholder litigation and close-corporation control matters.
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