Minority shareholders of a family corporation, were also trust beneficiaries and found themselves in the voting minority of a multiple trustee trust which controlled the family corporation. This erupted into business related trust litigation over corporation affairs of the operating company. There were also trustee and shareholder differences where corporate governance and trust governance issues converged resulting in corporate and trust fiduciary duty claims and fundamental contract law disputes. In addition, the decedent’s capacity became a material litigated issue. At trial, the clients defeated the conflicted management trustees’ claim for a seven figure oral contract bonus. This litigated resolution of the bonus claim identified evidence that resulted in a global resolution of all issues, and also resulted in a separate trust litigation seven figure settlement for KGR’s clients who were the heirs and trust beneficiaries. For a thorough discussion of these issues, or if you have other questions regarding your minority shareholders rights, please contact David Wright and Kevin Koons, or one of our other attorneys here to discuss your situation. It would be our pleasure to assist you.
Small Business Ownership – Opportunities and Challenges