Fiduciary Liability

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7^th Circuit Court of Appeals

Case Name: Frances Gecker, et al. v. Estate of Kevin Flynn

Case No: 16-1075; 16-1132; 16-1133; 16-1143; 16-1148; 16-1160; 16-1161; 16-1164; 16-1165; 16-1235

Officials: KANNE, SYKES, and HAMILTON, Circuit Judges.

Focus: Fiduciary Liability

This case arises out of the Illinois Gaming Board’s decision to revoke Emerald Casino, Inc.’s gaming license. In an attempt to recover the value of the license, the bankruptcy trustee sued the defendants—former Emerald officers, directors, and shareholders—for breach of contract and breach of their fiduciary duties.

This set of consolidated appeals concerns the district court’s decision on those claims.   Defendants Kevin Flynn, John McMahon, Kevin Larson, and Joseph McQuaid contest the court’s decision that their conduct caused the Board to revoke Emerald’s license. The defendants thus argue that the court could not have held them severally liable for the value of Emerald’s license.

The trustee contests the court’s decision that (1) defendant Peer Pedersen’s conduct did not cause the Board to revoke Emerald’s license, (2) the statute of limitations barred her breach‐of‐fiduciary‐duty claim, and (3) the defendants were severally liable instead of jointly and severally liable.   We reverse and remand the court’s decision to hold the defendants severally liable instead of jointly and severally li‐ able. But otherwise, we affirm.

Reversed and Remanded in part. Affirmed in part.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.