Honigman v. Green Giant Co.

208 F. Supp 754 (1961)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Honigman v. Green Giant Co.

United States District Court for the District of Minnesota
208 F. Supp 754 (1961)

KS

Facts

Edith Honigman (plaintiff) owned 1,570 shares of Class B stock in Green Giant Company (defendant). In 1960, a recapitalization plan was submitted to the voting Class A shareholder and to the nonvoting Class B shareholders. Pursuant to the plan, Class A and Class B shares would be exchanged for a new class of voting common stock. Each Class A share would be exchanged for 10 shares of convertible common stock, each of which would convert annually into 100 shares of the new voting stock. Each Class B share would be exchanged for one share. The recapitalization plan was approved by 100 percent of Class A shareholders and over 92 percent of Class B shareholders. Honigman filed suit on behalf of herself, all Class B shareholders, and derivatively on behalf of the corporation. Honigman argued that the issuance of the premium stock to Class A shareholders was unfair, illegal, and void because no consideration had been given by the Class A shareholders in return for the convertible shares and the allotment of shares to the Class A shareholders were unfair.

Rule of Law

Issue

Holding and Reasoning (Nordbye, 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 824,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  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.

Here's why 824,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 989 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 824,000 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
  • 46,300 briefs - keyed to 989 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