Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

'Faithless Servant' Must Surrender All Income

By ALM Staff | Law Journal Newsletters |
October 01, 2003

The Second Circuit, in a rare venture into the realm of damages resulting from a breach of the duty of loyalty, has ruled that a “faithless servant” must surrender all income, including investment opportunities, after the date the disloyal acts began. Phansalkar v. Andersen Weinroth & Co., 2003 WL 22130902 (2d Cir. 9/16/03) (Jacobs and Straub, Cir. Judges and Wood, D.J., sitting by designation).

Rohit Phansalkar was employed as a nominal partner in the merchant-banking firm of Andersen Weinroth. As such, Phansalkar was paid a salary and received options and warrants, and “carried interest” in certain of the firm's investments. Phasalkar sat on various boards as the company's representative, was awarded stocks and options, and was paid director's fees. Under company policy, all director compensation belonged to the firm and therefore Phasalkar was obligated to disclose this compensation and turn it over. He did not do this. In turn, Phansalkar alleged that Andersen Weinroth converted his interests in various deals that he worked on for them.

Firm Brings Action

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Spurred By Data Breaches, CLOs Are Increasing Cybersecurity Leadership Role Image

Chief information officers still bear the brunt of cybersecurity worries at many companies. But a study by the Association of Corporate Counsel Foundation finds that chief legal officers are increasingly taking a leadership role in cybersecurity strategy.

GCs Want to Tap Into AI But Lack Roadmap, Report Shows Image

General counsel are eager to tap the promise of generative AI. But without clear technology road maps, many legal departments are struggling to turn that interest into action.

Is Google Search Dead? The Key to Thriving In an AI-Driven World Image

Part Two of this two-part articleexamines practical steps marketers must take to succeed in this changing landscape by embracing a multichannel, AI-driven approach to their marketing and PR efforts. This means rethinking your strategy to build direct connections with your audience, using platforms that elevate your visibility and focusing on storytelling that resonates.

Shifting Crypto and Cyber Enforcement Priorities In SEC Image

When the SEC issues the next annual enforcement report for fiscal year 2025, we expect securities offering actions and investment adviser actions will almost certainly be up, and the “crypto” and “cyber” cases will almost certainly be down. Public statements by the new SEC administration have said as much, but even more telling than public statements are the allocation of limited enforcement resources.

Seventh, Ninth Court Rulings Tighten Reach of Federal Video Privacy Protection Act Image

The VPPA may be nearly four-decades old and video-rental stores largely a thing of the past, but the rise of online content, streaming services and ancillary activities has brought with it frequent litigation based on the VPPA. The key challenge in these litigations is how to interpret the VPPA’s 1980s terms in light of today’s digital advances.