Opinion ID: 1984316
Heading Depth: 1
Heading Rank: 5

Heading: the aiding and abetting claims against burlington

Text: Burlington argues on appeal that this Court should affirm the dismissal of the aiding and abetting claim even if it reverses the judgment of the Court of Chancery with respect to any of the underlying claimed breaches of fiduciary duty. Although Burlington advances a persuasive argument that Plaintiffs have failed to state an aiding and abetting claim, the Court of Chancery did not consider this argument in its decision below. This Court may, however, decide issues not reached below in the interest of orderly procedure and the early termination of litigation. Orzeck v. Englehart, Del.Supr., 195 A.2d 375 (1963); Weinberg v. Baltimore Brick Co., Del.Supr., 112 A.2d 517, 518 (1955) (The exercise of that power [to decide issues not reached below] is controlled by balancing considerations of judicial propriety, orderly procedure, the desirability of terminating litigation, and the position of the lower court as the primary trier of issues of fact.). A claim for aiding and abetting requires the following three elements: (1) the existence of a fiduciary relationship, (2) a breach of the fiduciary's duty, and (3) a knowing participation in that breach by Burlington. Weinberger v. Rio Grande Indus., Inc., Del.Ch., 519 A.2d 116, 131 (1986). Plaintiffs fail to allege any facts which would state a claim against Burlington. They merely include a conclusory statement that BNI [Burlington] had knowledge of the Individual Defendants' fiduciary duties and knowingly and substantially participated and assisted in the Individual Defendants' breaches of fiduciary duty, and, therefore, aided and abetted such breaches of fiduciary duties described above. Other than this statement, Plaintiffs have alleged no facts from which a claim for aiding and abetting breaches of fiduciary duty could be stated. The Court of Chancery committed no error in dismissing the aiding and abetting claim.