Association of Haystack Property Owners, Inc., Henry J. & Shirley Banach v. Peter Sprague and Herbert Hart…

Summary

The court held that the plaintiffs' amended complaint should not have been dismissed at the pleading stage because, accepting its factual allegations as true, it was possible that they could prove that the defendants owed and breached fiduciary duties to the plaintiff class. The court emphasized that dismissal is improper where any circumstances consistent with the allegations could entitle plaintiffs to relief, particularly when the asserted theory is novel. The order was reversed and the case was remanded for further proceedings.