Mullins v. Corcoran, et al. (Lawyers Weekly No. 12-019-17)
Partners in closely held real estate business could not resolve development dispute; summary judgment denied on breach of contract and fiduciary duty claims due to factual disputes.
Partners in closely held real estate business could not resolve development dispute; summary judgment denied on breach of contract and fiduciary duty claims due to factual disputes.
Member of limited liability company held entitled to majority voting rights and record access; individual member cannot unilaterally manage company affairs despite contractual language.
Court vacated default judgment by confession where defendants raised meritorious defenses to allegedly usurious loan rates and improper judgment-confession provisions.
No enforceable contract formed where detailed negotiations involved preliminary written proposals disclaimed as drafts, a counteroffer rejected the other party's position, and any oral agreement violated the Statute of Frauds for land interests.
Court reconsidered denial of preliminary injunction, finding NetScout was legal successor to non-compete agreement. Injunction limited to employee's sales region where employer proved legitimate business interests.
Covenant not to sue binds holding company, not individual members, so individuals' personal lawsuit does not breach the company's contractual covenant.
Assignee of noncompete agreement cannot enforce restrictions broader than original contracting party possessed. Employer must show agreement protects legitimate business interests.
State courts have concurrent jurisdiction over federal Securities Act class actions. A company's failure to disclose interim clinical trial results is not actionable when the company could not lawfully have known those results.
Court dismisses shareholder challenge to trustees' application of majority-of-outstanding-shares voting requirement in contested trustee election.
Trustees' application of majority-vote requirement for board election, contained in disclosed by-laws and strictly applied, did not breach fiduciary duties or good faith covenant.