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Johnson v. Steel, Inc.

Nevada Supreme Court
678 P.2d 676 (1984)


Facts

Joyce Johnson (Joyce) (plaintiff) was a minority shareholder in Steel, Incorporated (defendant). Joyce filed a complaint for a shareholder-derivative-action lawsuit. Joyce alleged that Stanley Johnson (Stanley), a director and CEO of Steel, misappropriated $650,000 from Steel. The other directors are Constance Johnson (Stanley’s wife) and Sophie Weiner. Weiner and Stanley were officers of another corporation that allegedly had been using Steel’s equipment without compensating Steel for the use of the equipment. The lower court dismissed Joyce’s claim for failure to make a demand on Steel’s board of directors prior to filing her lawsuit. Joyce appealed to the Nevada Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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