Bailey Brake Farms, Inc. v. TroutAnnotate this Case
Plaintiffs, two shareholders of a closely held corporation, attempted to tender their shares to the corporation pursuant to a buy-sell agreement. Dissatisfied with the corporation's offer to purchase, the two shareholders sought relief in Chancery Court, and the court submitted the matter to binding arbitration to determine the stock's value as required by the contract. However, the chancellor rejected the arbitrator's valuations and ordered the corporation to buy the plaintiffs' stock at a much higher purchase price. The corporation appealed the chancellor's rejection of the arbitration award, and plaintiffs cross-appealed, claiming that they were entitled to additional damages, including prejudgment interest. Finding no legal basis for setting aside the arbitration award, the Supreme Court reversed the chancery court and reinstated the arbitration award.