Chelsea Industries, Inc. v. Gaffney

How courts have described this case

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

• holding that trusted executives composing virtually all of the management of a division of a corporation owed fiduciary duties to the corporation despite not being officers or directors of the corporation
• holding disloyal employee \can be required to forfeit the right to retain or receive his compensation for conduct in violation of his fiduciary duties\
• stating that an executive employee is barred from actively competing with his corporation during his employment (emphasis added)
• indicating disloyal employee may be required to pay back compensation received during periods of disloyalty
• allowing employee to plan competition while employed but not to take any substantive action in furtherance of plan
• allowing plaintiff corporation to recover compensation paid to disloyal employees notwithstanding lack of evidence that employees caused lost profits

Source: CourtListener parenthetical corpus (CC0).