# kaal:claim:2317580-002

**Claim.** The liability standard for breach of fiduciary duty is set so high that courts rarely find directors in violation, because only a board's sustained or systematic failure to exercise oversight can produce liability.

**Type.** failure  **Support.** evidenced

**Holds when.**

- director oversight liability under Caremark and its progeny

**Source quote.**

> The standard for liability is so high that it is hard for courts to find directors in violation of their fiduciary duties.2 Only a board's sustained or systematic failure to exercise oversight can result in liability.

**From.** Wulf A. Kaal, Elizabeth R. Malay, *The Role of Corporate Integrity Agreements in the Expansion of Fiduciary Duties* (2013), I. Introduction, page 5

**Cite as.** Wulf A. Kaal, Elizabeth R. Malay, The Role of Corporate Integrity Agreements in the Expansion of Fiduciary Duties (2013). SSRN: https://ssrn.com/abstract=2317580

**Verify.** sha256 of source PDF `50973e1e820aef47a4e7ffdbdcb513d03f1845643fcf4fa5910e9528a0b7dac2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Malay%20-%202013%20-%20The%20Role%20of%20Corporate%20Integrity%20Agreements%20in%20the%20Expansion%20of%20Fiduciary%20Duties.pdf

**Failure mode.** unreachable oversight liability threshold  (family: enforcement-gap)

**Topics.** corporate-governance, law-and-legal-systems, compliance

**Keywords.** duty-of-oversight, caremark, director-liability, enforcement-gap

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