Baur v. Baur Farms, Inc.
Annotate this CaseThe majority shareholder of a family farm corporation served as a director and officer of the corporation. A minority shareholder of the corporation (Plaintiff) sued the corporation and the majority shareholder (collectively, Defendants), alleging that illegal, oppressive, and fraudulent acts by the majority shareholder resulted in waste of the corporation's assets and constituted a breach of fiduciary duty. At the close of Plaintiff's evidence at trial, Defendants moved for a directed verdict. The district court granted the motion and dismissed the action, concluding that Plaintiff had presented no evidence that Defendants had acted fraudulently, illegally, or oppressively. The Supreme Court reversed, holding that the district court erred in dismissing Plaintiff's oppression claim because the court did not apply the correct legal standard in the adjudication of the oppression claim. Remanded.
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