What is the scope of the tort of appropriation of corporate opportunity?

In Massachusetts, the tort of appropriation of corporate opportunity involves prohibiting a person from taking advantage of a business opportunity that should have been presented to or used by a corporation. This tort is designed to protect a company’s right to have access to certain opportunities and to prevent those with an insider relationship with the company from unfairly profiting from them. The scope of the tort of appropriation of corporate opportunity is very wide. It applies to any opportunity that should have been presented or used by a corporation. This includes any opportunity that could have been reasonably identified and exploited for the benefit of the company, such as a potential contract, investment opportunity, or a potential market to enter. In addition, the scope of the tort applies to situations where a person with a fiduciary duty to the company takes advantage of the opportunity, regardless of whether he/she did so in his/her own interest or in the company’s interest. In fact, this applies to any opportunity that the company would have reasonably pursued had it known about it. Ultimately, the scope of the tort of appropriation of corporate opportunity is designed to protect a company’s right to have access to certain opportunities and to prevent those with an insider relationship from unfairly profiting from them. Anyone who engages in such activities can be liable for any damages that the company may suffer as a result.

Related FAQs

Are there any defenses to a tortious interference with contractual relations claim?
What is the concept of "trademark tacking"?
What are the remedies available for a violation of a trade dress infringement claim?
Are there any special rules for unfair competition related to the internet?
Are there any special rules for protecting trade secrets?
What is the Publicity Rights Act?
How do antitrust laws apply in the context of unfair competition?
What is the definition of “unfair trade practices”?
What are the elements of a trade dress infringement claim?
What is a Uniform Dispute Resolution Policy (UDRP) claim?

What is the scope of the tort of appropriation of corporate opportunity?

Related FAQs

Related Blog Posts