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Nevada Law Library

Breach Of Duty Of Loyalty

In Nevada, the elements for a claim of breach of the duty of loyalty are:

1.         Defendant is a fiduciary to Plaintiff company;

2.         Defendant owed plaintiff the duty of loyalty, requiring defendant to maintain, in good faith, the corporation’s and its shareholders’ best interests over anyone else’s interests;

3.         Defendant breached the duty of loyalty; and

4.         Causation and damages.

Shoen v. SAC Holding Corp., 122 Nev. 621, 632 (Nev. 2006); White Cap Indus., Inc. v. Ruppert, 119 Nev. 126, 67 P.3d 318 (2003); Rhine v. Miller, 94 Nev. 647, 649, 583 P.2d 458 (1978).