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.]
