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Blake v. Friendly Ice Cream Corp.

2006 WL 1579596 (2006)

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Blake v. Friendly Ice Cream Corp.

Massachusetts Superior Court
2006 WL 1579596 (2006)

SC

Facts

S. Prestley Blake (plaintiff), a shareholder of Friendly Ice Cream Corporation (Friendly) (defendant) filed a shareholder derivative lawsuit against Friendly. Friendly appointed a special litigation committee (SLC) to investigate Blake’s claims. Daly, a member of the Friendly board of directors, was one of the SLC members. One of Blake’s claims was that Friendly’s directors, including Daly, breached their fiduciary duties to the corporation. As a result, Blake argued that Daly was not sufficiently independent to render a decision on Blake’s demand that was in the best interests of the corporation.

Rule of Law

Issue

Holding and Reasoning (Agostini, J.)

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