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ABKCO Music Inc.: Case Study

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ABKCO Music Inc.: Case Study
Issue: Did ABKCO Music Inc. (Allen B. Klein) use Harrison’s confidential information to purchase Bright Tunes? Did Klein violate fiduciary duty with Harrison?
Rule:
An agent has a Duty of Loyalty to his principal: to avoid conflicts of interest, and not to disclose confidential information of the principal.
Application:
Allen B. Klein (president of ABKCO) purchased Bright Tunes after the termination of his fiduciary relationship with Harrison.
Klein used confidential information (such as earnings schedules) of Harrison to purchase Bright Tunes which breached the agent’s Duty of Loyalty.
Harrison counterclaimed for damages resulting from his agent’s breach of the Duty of Loyalty.
Conclusion: The judge stated that Klein’s conduct did not meet

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