For Your Data Debaun V. Kickoff Western Depository Fiscal Establishment Together With Trust Co. Illustration Brief

DeBaun v. First Western Bank together with Trust Co. representative brief summary
46 Cal.App.3d 686 (1975)

CASE SYNOPSIS

Petitioner appealed the judgment of the Superior Court of Los Angeles County (California) awarding respondents damages together with attorney fees for breach of duty to the corporation.

CASE FACTS
Respondents, shareholders, brought an activeness against petitioner controlling shareholder to recover damages caused past times petitioner's sale of stock, resulting inwards the corporation's insolvency, together with a derivative activeness on behalf of the corporation pursuant to Cal. Corp. Code § 834. The courtroom institute for respondents together with awarded attorney fees. Petitioner appealed.

DISCUSSION

• The courtroom affirmed, belongings that petitioner had a duty every minute controlling bulk shareholder to practise expert faith together with fairness inwards selling its stock. 
• Petitioner breached that duty because it was aware that the potential buyer had numerous liens, judgments, together with bankruptcies against it, indicating that he going to loot the corporation. 
• Petitioner failed to bear a reasonable investigation prior to selling the stock. 
• The court's findings of facts that were immaterial were non meaning because the textile findings were supported past times substantial evidence. 
• There was substantial bear witness for the court's mensurate of damages.

CONCLUSION
The courtroom affirmed, belongings that petitioner breached its duty every minute controlling bulk shareholder past times non conducting an adequate investigation of a potential buyer when circumstances should bring raised petitioner's suspicion that buyer intended to loot the corporation.

Recommended Supplements for Corporations together with Business Associations Law

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