Americas: Dealing With Conflicts Of Interest In Joint Enterprises

The October 2013 edition of The Letter – Americas featured an article entitled “Let’s be clear” by Cox Castle Nicholson partners John Kuhl and Amy Wells on the need for “a robust manager standard of care” for investors to address potential conflicts of interest in joint enterprises.

The article cites a series of recent court decisions that have reaffirmed the willingness of Delaware courts to accept contract provisions that limit fiduciary duties applicable to managers, thereby denying investors who are aggrieved by actions they considered infected by conflicts of interest from recovering from the manager.

The article discusses how standard of care documents must be clear and agreed upon by all parties.