CanCan Development, LLC, a company formed to develop a casino in D’Iberville, Mississippi, obtained a judgment for nearly $1 million against its former manager, Sandra Manno, for breaching her fiduciary duty of loyalty and wasting company funds by taking unauthorized compensation, withdrawing nearly $100,000 in cash from the company’s bank account for her personal use, and spending hundreds of thousands of dollars on lavish meals, hotels, flights and entertainment for herself and her friends.  Plaintiffs also successfully defeated Ms. Manno’s counterclaims for wrongdoing by CanCan’s managers and majority member for continuing to develop the project after she was fired, dissolving the company after no financing could be obtained, and moving forward with a new entity to develop a casino on the same land that CanCan had tried to develop.  The Delaware Court of Chancery found after a four day trial that while Ms. Manno breached her fiduciary duties, no duties to CanCan or its members had been breached by the plaintiffs in their dissolution of CanCan and development of the Scarlet Pearl, a premiere hotel and casino soon to open on CanCan’s proposed site in D’Iberville.  The Court’s decision can be found here.

Stephen E. Jenkins and Catherine A. Gaul represented the plaintiffs-counterclaim defendants in this action.