The Delaware Court of Chancery, David C. Fannin, et al. v. UMTH Land Development, LP, et al. and United Development Funding III, LP, C.A. No. 12541-VCF, memo. op. (Del. Ch. July 31, 2020), ruled, under In re USACafes, LP Litigation, C.A. No. *11146-CA (consol.), opinion (Del. Ch. June 7, 1991), that directors of a corporation that serves as a limited partnership’s general partner owe fiduciary duties to the limited partnership.
NEW: Morris James discusses the decision in Chancery Rejects Bid to Jettison USACafes and its Holding That, Absent Agreement to the Contrary, the Controllers of a Corporate General Partner Owe Fiduciary Duties.
Weil Gotshal discusses the decision in The Limits of Interposing a Limited Liability Entity as the General Partner of a Limited Partnership.