Fritchel v. WhiteAnnotate this Case
The Supreme Court affirmed the judgment of the district court dismissing this direct action brought by Plaintiffs, a sub-group of limited partners in a Limited Partnership, against Defendants to remedy losses incurred when the Decedent disposed of the Limited Partnership's real property, holding that Plaintiffs must seek their remedy through a derivative action on behalf of the Limited Partnership.
In their motion to dismiss, Defendants argued that Plaintiffs alleged derivative harms that had to be filed as a derivative action. The district court agreed. The Supreme Court affirmed the district court's judgment dismissing the complaint, holding (1) Plaintiffs' complaint failed to assert any facts entitling them to relief in the form of a direct action; (2) Wyoming courts are without discretion to allow direct actions to remedy derivative injuries; and (3) Plaintiffs can satisfy the demand rule by pleading "demand futility."