Opinion ID: 2570185
Heading Depth: 1
Heading Rank: 6

Heading: Remedies Beyond Appraisal Value

Text: {31} Notwithstanding Bennett's breach of fiduciary duty, the district court decided not to award punitive damages or to order Bennett and NMBIC to disgorge profits. The Peters Group sees this as the court effectively sanctioning Bennett's wrongdoing, allowing him and NMBIC to profit from such wrongdoing. Thus, according to the Peters Group, the court's decision violated the maxim for every wrong there is a remedy. We agree that Bennett committed a wrong. We disagree, however, with the notion that the Peters Group has been left without a remedy. As we have noted, the Peters Group received fair value for their shares, which is the measure of compensatory damages for breach of fiduciary duty. We also fail to see any causal connection between Bennett's conduct and the profit made by additional purchases of stock. Additionally, we note a fundamental problem with the Peters Group's argument; namely, it disregards the primary importance of the district court's discretion in awarding punitive damages or ordering equitable remedies.