A more thorough explanation:

Definition: Adverse domination is a legal doctrine that allows the statute of limitations on a claim for breach of fiduciary duty against directors and officers of a corporation to be paused until the corporation is no longer controlled by the alleged wrongdoers. This doctrine aims to prevent corrupt officers from delaying actions or investigations that could expose their wrongdoing on behalf of the corporation.

For example, if the directors and officers of a company are engaging in fraudulent activities, they may be able to cover up their wrongdoing and prevent any legal action from being taken against them. However, if the doctrine of adverse domination applies, the statute of limitations on any claims against them will be paused until they are no longer in control of the company. This gives the company a chance to investigate and take legal action against the wrongdoers.

The doctrine of adverse domination was first introduced in the early 20th century but was revived in the 1990s when the Resolution Trust Corporation (RTC) used it to resuscitate claims against former directors of financial institutions under the Financial Institutions Reform Recovery, and Enforcement Act of 1989. This Act aimed to transform the savings and loan industry by closing insolvent thrift institutions and providing funds to pay out insurance to their depositors.

In Clark v. Milam, the U.S. District Court for the Southern District of West Virginia explained the doctrine of adverse domination, stating that "tolling is considered appropriate because where the culpable directors and officers control a corporation, they are unlikely to initiate actions or investigations for fear that such actions will reveal their own wrongdoing."