Berg & Berg Enterprises, LLC v. Boyle

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• explaining that upon insolvency corporate insiders owe a fiduciary duty under California law to the corporation’s creditors not to divert, dissipate, or unduly risk “corporate assets that might otherwise have been used to satisfy creditors’ claims.”
• summarizing modern federal and out-of-state decisions to that effect, citations omitted
• “When a corporation becomes insolvent, California’s trust fund doctrine imposes an additional, albeit limited, fiduciary duty on the corporation’s directors,” citing Berg
• “In an economic sense, when a corporation is solvent, it is the shareholders who are the residual claimants of the corporation’s assets and who are the residual risk-bearers.”

Source: CourtListener parenthetical corpus (CC0).