November 29, 2023
JAMS just published a useful article about navigating mediation claims against corporate officers and directors. Often these claims are derivative claims from a related suit against the company and are brought by a shareholder or LLC interest holder alleging the officer or director breached a fiduciary duty of care owed to the company and shareholders. These claims are incredibly complex because of the multitude of parties and attorneys navigating issues between the individual director or officer, the company, the board, and potentially an insurance company that provides the director or officer liability insurance.
The article focuses on four major issues to consider when engaging in a mediation involving an officer or director, including:
- Potential disagreement among the directors and officers involved because of the varying defenses of each party.
- Negative publicity for the company or individual director or officer.
- The status of the case and whether a pending motion to dismiss will have an effect on the derivative claims.
- The amount of directors and officers liability insurance coverage.
To read the full article from JAMS, click here [1].
To read how Castaybert PLLC can assist you in complex corporate mediations and director and officer liability and insurance coverage litigation and counseling, click here [2] and here [3].