Avoid Mistakes of the Past

In a September 2011 decision, the Third Circuit Court of Appeals reversed a district court's earlier grant of summary judgment to the defendants, officers and directors of the Lemington Home for the Aged (LHA), a non-profit provider of nursing home services. In doing so, the Third Circuit revived the plaintiff-creditors' committee's claims that LHA’s officers and directors had breached their fiduciary duties to LHA. Inre Lemington Home for the Aged is the latest of a number of cases to have considered officer and director fiduciary duties in the context of insolvency. In this article, SRZ attorneys discuss how officers and directors can avoid mistakes of others and meet their fiduciary obligations.