Quimbee logo
DMCA.com Protection Status

Brane v. Roth

590 N.E.2d 587 (1992)

Case BriefQ&ARelatedOptions
From our private database of 22,300+ case briefs...

Brane v. Roth

Indiana Court of Appeals

590 N.E.2d 587 (1992)

Facts

Porter Roth and other shareholders (plaintiffs) filed a lawsuit against Paul Brane and other directors (defendants) of a rural grain-elevator cooperative (co-op). The complaint alleged that the directors failed to protect the co-op’s financial position by adequately hedging in the grain market. Ninety percent of the co-op’s business was buying and selling grain, which was handled by the co-op’s manager. The directors met monthly to review reports prepared by the manager and the co-op’s bookkeeper. The co-op’s profits had been declining for a few years, and in 1979, the co-op’s certified public accountant (CPA) recommended that the directors hedge the co-op’s grain position to protect the co-op’s financial interests. The directors authorized the manager to hedge for the co-op, but only a minimal amount was hedged. The directors rarely requested additional information on the manager’s and bookkeeper’s reports and did not make any specific inquiry as to significant losses sustained in 1980. Another CPA opined that the co-op’s gross loss was primarily caused by the failure to hedge. The trial court concluded that the directors breached their fiduciary duties by hiring a manager who was inexperienced in hedging and failing to reasonably supervise him. The court also found that the directors failed to learn the fundamentals of hedging that would have allowed them to effectively direct the manager and the co-op’s hedging activities and that their gross inattention to these matters caused the co-op’s financial losses. The directors appealed.

Rule of Law

Issue

Holding and Reasoning (Ratliff, C.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 516,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead 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.

    Learn about our approachRead more about Quimbee

Here's why 516,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 22,300 briefs, keyed to 984 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.

Questions and answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Access this case brief for FREE

With a 7-day free trial membership
Here's why 516,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 22,300 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership