In re Estate of Poe (Opinion)Annotate this Case
In this challenge to a share issuance the Supreme Court held that the probate court improperly submitted an invalid theory of liability to the jury and that the trial court's charge error probably caused the rendition of an improper judgment.
In the weeks before he died, Dick Poe, the sole director of Poe Management, Inc. (PMI), authorized the corporation to issue new shares and then bought the new shares for $3.2 million, making him the majority owner of PMI. Dick's death vested control of the family-owned car-dealership enterprise in the two co-executors of Dick's estate. Richard, Dick's son and PMI's only other shareholder, brought this action challenging the share issuance as a breach of Dick's fiduciary duty. The trial court rendered judgment in favor Richard. The Supreme Court reversed and remanded the case for a new trial, holding that the probate court erred in charging the jury in two respects and that the errors were harmful.