Peter Shields was the president and a member of the board of directors of Production Finishing Corporation for seven years. The company provided steel-polishing services. It did most, it not all, of the polishing work in the Detroit area, expect for that of the Ford Motor Company. (Ford did its own polishing.) On a number of occasions, Shields discussed with Ford, on behalf on Production Finishing, the possibility of providing Ford’s steel-polishing services. When Shields learned that Ford was discontinuing its polishing operation, he incorporated Flat Rock Metal and submitted a confidential proposal to Ford which provided that he would buy Ford’s equipment and provide polishing services to Ford. It was not until he resigned from Production Finishing that he informed the board of directors that he was pursuing the Ford business himself. Production Finishing sued Shields. Has Shields breached his fiduciary duty of loyalty to Production Finishing? Who wins? Production Finishing Corporation v. Shields, 158 Mich. App. 479, 405 N.W 2d 171, Web 1987 Mich. App. Lexis 2379 (Court of Appeals of Michigan)

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Yes in this case Peter Shields did breach his fiduciary duty of loyalty to Production Finishing This ... View the full answer