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Gimpel v. Bolstein

New York Supreme Court
477 N.Y.S.2d 1014 (1984)


Facts

Robert Gimpel (Robert) (plaintiff) was an employee of and shareholder in the family-owned business Gimpel Farms, Inc. (Gimpel Farms). The shareholders each obtained their shares via bequest or gift. In 1974, Robert was fired for embezzling funds and was excluded from all further managerial decisions. Gimpel Farms had never paid dividends since its formation in 1931, and it continued that policy after Robert’s termination. The corporation’s other shareholders received significant compensation in the form of salary and benefits, but Robert received no shareholder benefits or compensation after his termination. Gimpel Farms also prohibited Robert from inspecting the corporation’s books and chose not to hold any shareholder meetings after he was terminated. Robert filed a petition to involuntarily dissolve Gimpel Farms.

Rule of Law

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Issue

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Holding and Reasoning (Lonschein, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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