Braun was a director of Cable Shipping Ltd., a corporation which leased a large wharf from Valdez. Braun gave instructions to the person in charge of the wharf that the S.S. Cambridge would be using the wharf to unload its cargo. The S.S. Cambridge damaged the wharf on its arrival, and the wharf owner brought an action against Cable Shipping Ltd. for repairs. If the S.S. Cambridge was owned by another corporation in which Braun had an undisclosed financial interest, Braun would be liable to Cable Shipping Ltd. for granting unauthorized permission for the ship to use the wharf.

Question

Quizplus · Accepted Answer

Braun, having an undisclosed financial interest in the S.S. Cambridge's owning corporation, breached his fiduciary duty to Cable Shipping Ltd. by granting unauthorized permission, potentially making him liable for the resulting damages to the wharf.

Braun Was a Director of Cable Shipping Ltd