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

The tort of appropriation of corporate opportunity is a type of unfair competition law seen in West Virginia. This law prevents an individual or entity from taking advantage of a business opportunity that it should have presented to the company instead. For example, an employee of a company should not use company resources or contacts to pursue a similar business venture to compete against the company they are employed by. The scope of the tort of appropriation of corporate opportunity typically applies to fiduciary relationships. A fiduciary relationship is one of trust and loyalty, such as a company and its employee. In this case, the company has a duty to its shareholders to pursue any and all profitable opportunities, so the employee cannot take advantage of any opportunity that could be beneficial to the company. In some cases, the appropriated opportunity must possess certain characteristics. For example, the opportunity must be reasonably related to the company’s current or anticipated business, it must be available to the company, and it must impose unfair competition upon the company. Also, the business opportunity must have been taken from the company without its knowledge or consent. In other words, the company must not have known about the opportunity or given permission for it to be pursued. Finally, the tort of appropriation of corporate opportunity generally applies when the company would be financially harmed by the appropriation of the opportunity. This harm can include lost profits or revenues, as well as any other form of harm. Therefore, the scope of the tort of appropriation of corporate opportunity is to prevent a fiduciary from taking advantage of a business opportunity that should have been presented to the company instead. This law is intended to protect the company’s interests and to protect its shareholders from financial harm.

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

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