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Northeast Harbor Golf Club, Inc. v. Harris
Maine Supreme Judicial Court
661 A.2d 1146 (1995)
Nancy Harris (defendant) was the president of the Northeast Harbor Golf Club (Club). Harris was approached by realtors on two occasions, each offering her the chance to purchase land bordering the Club’s golf course. Harris purchased the land in her own name without telling the Club’s board of directors about the opportunity before making the purchases. After the purchases, Harris informed the board of directors, but stated that she had no plans to develop the land. Eventually, however, she did develop the land. The Club brought suit, alleging that Harris violated her fiduciary duty to the club by usurping the Club’s corporate opportunity to purchase the neighboring properties. The trial court, using the line of business test, found that purchasing real estate was not in the Club’s line of business and that the Club was not financially able to make the purchases. Accordingly, the trial court ruled in favor of Harris. The Club appealed.
Rule of Law
Holding and Reasoning (Roberts, J.)
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