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Favorable settlement for partnership in action for breach of fiduciary duty.


Favorable settlement.

Donato, Brown & Pool defended a partnership in an action in Harris County, Texas for breach of fiduciary duty and entered into a favorable settlement for the partnership during trial.

The facts.

Plaintiff filed suit against a partnership and its two partners, alleging, among other things, breach of contract, fraud, and breach of the fiduciary duties to act in good faith, to deal fairly, and to refrain from self-dealing. In particular, the plaintiff asserted she had made a substantial investment in reliance on the defendants' representations and guarantees, yet was returned only a fraction of her initial investment. The case settled during trial with a favorable result for the partnership and its partners.