Charity May Sue Director For Breach of Duty on Contract
Arbitration clause in construction contract does not prevent separate fiduciary duty claim in court
A nonprofit organization that enters into a construction contract with a company owned by one of its directors may bring a separate breach of fiduciary duty claim against the director/owner when things go bad and is not limited to arbitration by the arbitration clause in the construction contract, an appellate court in Pennsylvania has held. ( Elwyn v. DeLuca, Superior Ct., PA, No. 1519 EDA 2011, 7/2/12 .)
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