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Johnson v. Tago, Inc.
California Court of Appeal
188 Cal. App. 3d 507 (1986)
- Written by Rose VanHofwegen, JD
Facts
Helga and Robert Johnson (plaintiffs) founded successful pharmaceutical company Tago, Inc. (defendant). The Johnsons held 41 percent of Tago’s shares and two seats on its board of directors, and Robert was chief executive officer. When the other three directors voted to remove the Johnsons, the Johnsons launched a proxy contest and sued Tago to recover their expenses. While the proxy fight was ongoing, the trial court entered a preliminary injunction ordering Tago to pay the Johnsons 41 percent of $25,000 as a retainer for their attorney fees, as well as all proxy-solicitation expenses Tago, the board, or the Johnsons incurred. Tago appealed.
Rule of Law
Issue
Holding and Reasoning (Poché, J.)
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