In a recent decision from the North Carolina Business Court, Barings LLC v. Fowler, the court shed light on the critical importance of fiduciary duty in business leadership. Barings, a global asset management firm, alleged that Ian Fowler, one of its former officers and managing directors, breached his fiduciary duty by helping orchestrate the mass resignation of 22 key employees who then joined a competitor, Corinthia Global Management. Barings claimed this orchestrated departure, along with the transfer of confidential information, was not just business competition—it was a betrayal of trust.
Under Delaware law, which governs Barings as a Delaware LLC, officers owe duties of good faith and loyalty to the company. According to Barings’s complaint, Fowler didn’t just plan his exit—he allegedly conspired with Corinthia and former colleague Kelsey Tucker to raid Barings’s workforce and misappropriate proprietary data. While the court dismissed several claims against Fowler and Tucker due to insufficient factual detail, it allowed the fiduciary duty and constructive fraud claims against Fowler to proceed, citing plausible allegations of concealment, self-dealing, and harm to the company.
This case serves as a cautionary tale: fiduciary duty isn’t just a legal buzzword. When breached, it can destabilize entire divisions of a company, especially if insiders are covertly working with competitors. Leaders entrusted with sensitive information must act in the company’s best interests—not their own. The court’s decision reflects a growing judicial awareness of how subtle breaches of loyalty can result in significant legal consequences, even if masked as competitive strategy.
The attorneys at Lord & Lindley have significant experience dealing with fiduciary litigation. If you need assistance with a breach of fiduciary duty, please give us a call at 704-457-1010 to find out how we may be able to help you. For more information regarding our firm, attorneys, and practice areas, please visit our website at www.lordlindley.com.