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The Ray Griffith Company, Inc. (RGC) began in the 1950s in Columbia, Mississippi, when Ray Griffith purchased the rights to a patent to manufacture a pecan picker. In 1992, RGC was devised to Ray's two sons, Tom and Harry Griffith. Tom was given direct ownership of three shares of the company, and Harry was given direct ownership of two shares of the company. Additionally, a trust was set up in each son's name, with each trust holding 87½ shares. Over the years that followed, the dividends of the corporation decreased, until Tom discovered that the reason the corporation's expenses were increasing was that Harry was charging personal expenses to the corporation and charging expenses of his two other businesses to the corporation. Tom sued Harry for conversion and breach of fiduciary duty. However, Harry maintained that out of those personal expenses, his cell phone bill, car repairs, gas, and health insurance were "necessary business expenses." Tom disputed this assertion. Do you think Harry breached his fiduciary duty in his capacity as the president of the corporation? Why or why not?
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