Glenn v. Hoteltron Systems, Inc.
Court of Appeals of New York
547 N.E.2d 71 (N.Y. 1989)
Jacob Schachter and Herbert Kulik (plaintiff) each owned 50 percent of Ketek Electric Corporation (Ketek). Kulik brought a shareholder derivative suit in the New York Supreme Court, and Schachter was found liable for diverting Ketek’s corporate assets and opportunities to Hoteltron Systems, Inc. (Hoteltron) (defendant). Schachter wholly owned Hoteltron. At trial for damages, the trial court found over $362,000 in Hoteltron profits resulting from the diversion of Ketek’s assets and opportunities. Schachter appealed, and the Appellate Division of the New York Supreme Court held that the damages should be awarded to Ketek, rather than Kulik individually. Kulik appealed, arguing that the result was unfair, because Schachter, the wrongdoer, owned half of Ketek and would thus reap half of the damages.
Rule of Law
Holding and Reasoning (Wachtler, C.J.)
What to do next…
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.
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 168,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 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.