McCann v. McCann, Jr.
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This case involved an ongoing dispute between brothers Ron McCann (Ron) and William McCann, Jr. (Bill) concerning the operation of McCann Ranch & Livestock Company, Inc. (Ranch), a closely-held corporation created by their father, William McCann, Sr. (William, Sr.). In 1997, William, Sr.'s shares passed to a trust set up to benefit his wife Gertrude, with Gary Meisner as trustee. In 2008, Ron filed suit against Bill, the Ranch and Meisner (Respondents) alleging a breach of fiduciary duties and seeking equitable relief or, the dissolution of the corporation. The district court granted summary judgment for the Respondents. Ron appealed, arguing that the district court erred in characterizing his claims as derivative and in finding that he failed to satisfy the elements of I.C. 30-1-1430(2)(b). Ron also argued that the court incorrectly limited the scope of discovery. Respondents cross-appealed, arguing that the district court erred in failing to award them attorney's fees. Upon review, the Supreme Court concluded the district court erred in granting summary judgment to Respondents as they failed to establish the necessary elements set forth in I.C. 30-1-1430(2)(b). Furthermore, the Court found that the district court did not err when it denied Respondents attorney fees. The case was remanded to the district court for further proceedings.
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