Jones v. Harris Associates L.P.
United States Court of Appeals for the Seventh Circuit
527 F.3d 627 (7th Cir. 2008)
Relevant factsFree
Harris Associates (defendant) advised Oakmark's mutual funds, and its compensation grew roughly in step with the funds' growth over several years, landing at a level comparable to what similarly situated funds paid their own advisers. Oakmark shareholders (plaintiffs) sued, arguing the compensation had become excessive and breached Harris's fiduciary duty to its client. The district court granted Harris summary judgment, and the shareholders appealed.
IssueFree
Whether the existence of a fiduciary duty regarding compensation implies that courts should review that compensation for reasonableness.