Facts: Sather Ranch Ltd. (SRL), represented by a receiver, sued Joseph Wayne Palmer Sather for breaching a fiduciary duty by personally acquiring the Grazing Lands, a parcel critical to the ranching operations, instead of allowing SRL to buy it. Joseph was a director of SRL and acted against the company's interests by making the purchase through his sister, Carol Sather, using her power of attorney for their father.

Issue: The main issue was whether Joseph's actions constituted a breach of fiduciary duty and what the appropriate remedy should be, specifically whether SRL should be awarded a constructive trust over the Grazing Lands or merely receive equitable compensation.

Court's Ruling: The court decided not to impose a constructive trust but instead awarded equitable compensation. It was determined that Joseph indeed breached his fiduciary duty by acquiring the Grazing Lands meant for SRL. The remedy awarded was based on the fair market value of the Grazing Lands at the time of trial, taking into account potential negative contingencies.

Costs/Damages Awarded: Equitable compensation was set at 66% of the fair market value of the Grazing Lands as of the trial date, subtracting the purchase price and costs incurred by Joseph. The court chose not to award a constructive trust, deeming it unjust and disproportionately punitive given the breach's nature and the lack of current operational necessity for SRL.