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Barth v. Barth

Supreme Court of Indiana
659 N.E.2d 559 (Ind. 1995)

Facts

Barth Electric Co. (defendant) was a closely held corporation. Michael Barth (defendant) was its president and majority shareholder, owning 51 percent of the company. Robert Barth (plaintiff) was a minority shareholder, owning 29.8 percent. Robert, as an individual, brought suit against the defendants for taking certain actions that reduced the value of his stock. The defendants filed a motion to dismiss on the grounds that (1) a shareholder derivative action was required to redress Robert’s claims and (2) Robert could not maintain an action in his own name. The trial court granted the defendants’ motion to dismiss. The court of appeals reversed. The defendants appealed.

Rule of Law

Issue

Holding and Reasoning (Sullivan, J.)

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