In CASE 19.1 Gatz Properties,LLC v.Auriga Capital Corporation (2012),Gatz Properties was the managing member of Peconic Bay,LLC,controlled by the Gatz family.After failing to disclose material offers for assets of the LLC,Gatz bought out the minority members' interests in Gatz Properties LLC for $20,890.The minority members sued,winning over $800,000 based on Gatz's breach of fiduciary duties.Gatz appealed.How did the court rule on appeal,and why?

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The court affirmed that Gatz had breached its fiduciary duties to the minority members of Gatz Properties, LLC. The court found that Gatz had failed to disclose material offers for assets of the LLC, and that Gatz's actions were not in the best interests of the minority members. As a result, the minority members were awarded over $800,000 in damages.