Quimbee logo with url
From our private database of 14,900+ case briefs...

Bonavita v. Corbo

Superior Court of New Jersey
92 A.2d 119 (Ch. Div. 1996)


Corbo Jewelers, Inc. (defendant) was incorporated by Michael and Dominic Corbo and Gerald Bonavita (plaintiff). Since 1984, Alan Corbo (defendant), Michael Corbo’s son, and Bonavita each owned 50 percent of the stock. Alan and his four children worked for the company and received nice salaries. Bonavita and his wife used to work for the company and received similar salaries. As Bonavita aged, however, he became less active in the corporation and wanted to retire. Bonavita continued to receive the salary even after he retired. Bonavita had no children to take over his position in the company. The corporation stopped paying the salary after Bonavita died in late 1994. In 1991, Bonavita had filed the complaint, alleging a corporate deadlock and shareholder oppression under New Jersey law. N.J.S.A. 14A:12-7. The essence of Bonavita's claim was that the corporation provided substantial benefits to the Corbos, including their salaries and other advantages, but provided no benefits to the Bonavitas. If the corporation refused to buy back Bonavita's stock, the stock became a worthless asset. The court appointed a provisional director as interim relief. In early 1994, Bonavita requested the corporation to pay a dividend of $650,000. This request and a later request for a smaller dividend were denied by Alan and the provisional director, despite the great financial condition of the corporation. Alan made clear that no dividend of any significant size would be approved.

Rule of Law


Holding and Reasoning (Lesemann, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 284,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,900 briefs, keyed to 201 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.