FIDUCIARY FOLLY LEADS TO FIASCO: THE CASE OF CONSOLIDATED PIPELINE AND EQUIPMENT CORPORATION (CPEC)

Jim Jameson, former president of CPEC Pipeline and Equipment Corp (CPEC), has brought an action against his father and his father's accountant. His father, Paul, is the 100% owner of CPEC, and has arranged the sale of the business to a third party for $65 million. One year earlier, Jim's e...

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Bibliographic Details
Published in:Journal of the International Academy for Case Studies 2010-10, Vol.16 (7), p.7
Main Authors: Sullivan, Laura, Stretcher, Robert, Robertson, Joey
Format: Article
Language:English
Subjects:
Accountants
Case studies
Confidential relationships
Employment
Fair market value
Fiduciary responsibility
Inheritances
Litigation
Mismanagement
Presidents
State court decisions
Online Access:Get full text
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Summary:Jim Jameson, former president of CPEC Pipeline and Equipment Corp (CPEC), has brought an action against his father and his father's accountant. His father, Paul, is the 100% owner of CPEC, and has arranged the sale of the business to a third party for $65 million. One year earlier, Jim's employment as CPEC president had been terminated for alleged mismanagement. Following his termination, but prior to the sale of CPEC, Jim was paid $3.8 million by CPEC for a parcel of land Paul had essentially given to Jim five years earlier. Following the sale of CPEC Jim now claims the $3.8 million he received for the land did not represent an amount acceptable for an inheritance. Jim also felt that the land was of substantially higher value to the firm.The main question addressed by the case is whether Steve, the accountant for CPEC, owes a fiduciary duty to Jim in connection with this land sale.
ISSN:1078-4950
1532-5822