Clancy v. King

Best-selling author Thomas Clancy (defendant) and his then-wife Wanda King (plaintiff) entered the Jack Ryan Limited Partnership (JRLP) to write and sell Clancy’s Jack Ryan books. The partnership agreement specified the partners could compete with JRLP in similar businesses without breaching fiduciary duties and said the partners owed only a fiduciary duty to conduct partnership affairs in JRLP’s best interests, in good faith, and with due diligence. Neither JRLP nor its partners had rights in a partner’s other ventures, as Clancy already had others, including another book series. The next year, JRLP formed a joint venture with S & R Literary, Inc. (S&R) called “Tom Clancy’s Op-Center” (Op-Center) to develop a television series and split the proceeds. The joint-venture agreement (JVA) said S&R’s president, Steve Pieczenik, and Clancy would make all decisions regarding the project’s development, use, and exploitation mutually, but if they disagreed, Clancy’s decision would prevail. Pieczenik and Clancy signed individually and for JRLP and S&R. When the network discontinued the series, Op-Center expanded to books. Pieczenik hired an author who wrote them, while Clancy contributed only his name and reputation. The books made over $28 million. Clancy and King divorced midway through the series without changing their ownership of JRLP but designated Clancy managing partner. After book 14, Clancy withdrew permission for Op-Center to use his name. King sued alleging Clancy breached fiduciary duties to her and JRLP. The trial court found Clancy had not acted in JRLP’s best interests and breached fiduciary duties. After the appellate court affirmed, Clancy appealed to the Maryland Supreme Court.