The enforcement of Fiduciary obligations does not come without cost. There is a cost. When litigation is filed as a result of alleged Breaches of Fiduciary Duties there are attorney's fees and Court costs, for example.
Sometimes these expenses can reportedly equal or exceed the cost to investors of allegedly flawed Fiduciary conduct in relation to finances, for example. See Dealbook summary and link to article by Diana B. Henriques, "Lehman Loss Just the Start for Money Fund" p. B9, col. 4 (New York Times Nat'l Ed., Business Day Section, Friday, February 27, 2009)(reporting on a statement issued by the Defendants of the Reserve Primary Fund and its managers, "facing a blizzard of litigation" touched off when they announced that the Fund was "breaking the buck" or reporting a share price of less than one dollar after Lehman filed for Bankruptcy; the Defendants said that these lawsuits against the managers and the Fund "would ultimately cost its investors more than Lehman did.").
If there were no enforcement, even occasionally, would there be fulfillment of Duty? If so, how often?
Please Read The Disclaimer.
Nice scoop! I will be reading more of your posts in the future.
LLCT
Posted by: lucas law center | July 01, 2009 at 06:07 AM