The Liquidating Trustee of the Appalachian Fuels Liquidating Trust v. Energy Coal Resources (In re Appalachian Fuels)

(Bankr. E.D. Ky. Aug. 20, 2014)

The plaintiff’s complaint alleged that the individual board members for the parent entity breached their fiduciary duties to the subsidiary entity while it was insolvent. The court dismisses the complaint as to the board members holding that the board members owed a fiduciary duty to the subsidiary, but only to avoid personal self-dealing. The plaintiff had only alleged a breach of a duty of care and failed to allege that the board members advantaged themselves at the expense of the subsidiary. Opinion below.

2014-08-20 – in re appalachian fuels