Erste Asset Management Gmbh v. Hees

Summary

The Supreme Court of Delaware reversed the dismissal of Erste Asset Management GmbH’s action seeking relief from a prior derivative judgment. It held that Rule 60(b)(3) reaches fraud or misrepresentation between parties that prevents a litigant from fairly and adequately presenting its case, not only fraud on the court, and that Erste adequately pleaded such fraud based on false disclosures concerning John Cahill’s continuing consultancy. The Court also remanded the fiduciary-duty claim for further proceedings because the analysis may have been affected by the erroneous Rule 60(b)(3) standard. No separate opinions were issued.