The prior discussion, Determining a Remedy After Oppression or Breach of
Fiduciary Duty (Part 4), presented a listing of the
potential remedies on a finding of a breach of duty and oppression.
Frequently, the animosity among the parties will lead the court to
order a buyout of the complaining parties' interest. It does
not seem useful to order other alternative remedies, which would
leave the minority in place with the potential for further disputes
and an interest that otherwise may be worthless. Also, alternative
remedies would likely leave open the potential for further disputes
and absorption of the resources of the court in supervision.
The buyout of the minority by those in control is the usual
order. However, a forced sale by the breaching party has happened in the past. Once the court
has determined that a buyout is the appropriate remedy, an
appraisal proceeding will take place to establish the value of the
interest to be purchased.
