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State v. Leroy

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eBook details

  • Title: State v. Leroy
  • Author : Minnesota Supreme Court
  • Release Date : January 30, 1999
  • Genre: Law,Books,Professional & Technical,
  • Pages : * pages
  • Size : 50 KB

Description

BNK, Inc., is a closely held corporation that previously owned a small business. Bruce D. Kelly, the sole officer and director, owns 80 percent of the shares; D. Randall Blohm owns 20 percent of the shares. After BNK sold all of its corporate assets for approximately $112,200, Kelly caused BNK to distribute $2,400 of the proceeds to Blohm. Blohm sued Kelly and BNK, alleging that Kelly misappropriated some of the proceeds of the sale. BNK established a special litigation committee (SLC) to investigate Blohm‟s claims against Kelly. The SLC recommended that BNK not pursue those claims. The district court granted summary judgment to BNK and Kelly on all of Blohm‟s claims. We conclude that Kelly is entitled to summary judgment on Blohm‟s claim concerning events occurring before the sale of corporate assets but not on Blohm‟s claim concerning events occurring after the sale. We also conclude that Kelly and BNK are not entitled to summary judgment on Blohm‟s claim that he was denied access to corporate records. Therefore, we affirm in part, reverse in part, and remand.


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