ADVERSE-DOMINATION DOCTRINE

adverse-domination  doctrine.The  equitable  principle  that  the  statute  of  limitations  on  a

breach-of-fiduciary-duty claim against officers and directors (esp. a corporation’s action against its

own  officers and  directors)  is tolled  as  long  as  a  corporate plaintiff  is  controlled  by  the  alleged

wrongdoers. • The statute is tolled until a majority of the disinterested directors discover or are put

on notice of the claim against the wrongdoers. The purpose of this doctrine is to prevent a director

or officer from successfully hiding wrongful or fraudulent conduct during the limitations period.

FDIC  v.  Shrader  & York,  991  F.2d  216,  227  (5th  Cir.  1993).  This  doctrine  is  available  only  to

benefit the corporation. — Also termed adverse dominion; doctrine of adverse domination. [Cases:

Limitation of Actions    58(4, 5). C.J.S. Limitations of Actions § 205.] [Blacks Law 8th]