Doctrine of Adverse Domination Law and Legal Definition

Doctrine of adverse domination is a legal principle allowing the statute of limitations to be tolled in an action against corporate officers and directors until the alleged wrongdoers no longer control the corporation. For this reason, doctrine of adverse domination has gained prevalence in recent years in the context of litigation against directors and officers of insolvent financial institutions. The doctrine serves either to delay the accrual of a claim by a corporation against its directors and officers, or, in the alternative, to toll the running of the applicable statute of limitations.

Courts applying the doctrine of adverse domination have reasoned that corporations act only through their officers and directors, and those officers and directors cannot be expected to sue themselves or to initiate any action contrary to their own interests.[Clark v. Milam, 872 F. Supp. 307 (S.D. W. Va. 1994)].