Total Transportation, Inc. Victorious in Breach of Fiduciary Duties Case

June 28th, 2010

Total Transportation, Inc. initiated this litigation against joint members of a limited liability midstream cargo transfer business that the company had formerly joined. The defendant, Capital Marine Supply, exercised their stated rights under the operating agreement to dissolve Total Transportation with a ninety (90) day notice. The plaintiff claimed that Capital Marine breached its fiduciary duties and squeezed TTI out of their well-established, profitable business, under the guise of liquidating the company. Capital Marine took control of the business operation, retaining 100 percent of the company’s profits. Total Transportation also asserted Capital Marine managers violated their fiduciary duties.

After a lengthy trial on the merits, the court found for the plaintiff. Capital Marine and their managers had violated their fiduciary duties. The court found that although Capital Marine had the right to dissolve the business, the dissolution had to be for good reason. A judgment of $1,640,113.00 was awarded to Total Transportation in this matter.

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