Jones v. Harris Associates L.P.
United States Court of Appeals for the Seventh Circuit
527 F.3d 627 (7th Cir. 2008)
Harris Associates L.P. (Harris) (defendant) advised Oakmark on the maintenance of Oakmark’s mutual funds. The funds grew over the course of a couple of years and Harris’s compensation for its advice grew at the same rate. The compensation was roughly the same as other similarly situated funds pay their advisors. Oakmark shareholders (plaintiffs) brought suit alleging that the compensation became too high, in breach of Harris’s fiduciary duty to its client. The district court granted Harris’s motion for summary judgment. The plaintiffs appealed.
Rule of Law
Holding and Reasoning (Easterbrook, J.)