Opinion ID: 1255223
Heading Depth: 1
Heading Rank: 2

Heading: application of the doctrine of adverse domination to delay accrual or toll the statute of limitations is limited to situations involving fraudulent conduct exercised while the wronged corporation is controlled by a majority of culpable directors and officers.

Text: The second question certified requires a two-step analysis: 1) whether the adverse domination doctrine will apply to claims of negligence, gross negligence, breach of fiduciary duty or breach of contract; and 2) what extent of control by the dominating directors or officers is sufficient to justify application of the doctrine. Resolution Trust argues that the doctrine of adverse domination is applicable to situations involving mere negligence, and that a cause of action will not accrue while the corporation is under majority control of the culpable directors. The directors insist that the doctrine of adverse domination should only apply in cases of fraud and fraudulent concealment and that the addition of a single director who is not involved in the alleged wrongdoing ends any tolling of the cause of action. A.