While the Duty of Loyalty is generally applied to a Corporate Board, Larry Jones is certainly demonstrating that it doesn't apply to him -- neither perhaps does the duty of Care.
In what might be considered a prime example of what can happen when a founder/exec is fired, Larry Jones, the founder and 30 year Exec of Feed the Children, has gone public and asked donors not to give money to Feed the Children. His reason: the money will be used for lawyers, not the kids he cares about.
The details of what has gone on before now can be found well documented by the Oklahoman.
But, as I have said in previous bloggings, when a board has lost faith or trust in their exec, it's near impossible to regain this. Even if Mr. Jones succeeds in his suit to regain his job, imagine what life will be like for the Board, staff and Mr. Jones. It won't be good for anyone and particularly, Mr. Jones' customers: the kids. Mr. Jones should just move on. If donors think he was "done wrong to" they can support him in a new endeavor. Look at Habitat for Humanity's founder for example. He has continued, of course not without some public struggle, but that's finally past him and his board.
Clearly in court, fault can be found. But is it in the best interest of the organization and its customers? I think not.