Malone v. Malone
Louisiana Court of Appeal
77 So. 3d 1040 (2011)
Winnsboro Equipment, Inc. (WEI) was a family-owned corporation that operated a tractor dealership. Ken Malone (plaintiff) owned 849.5 shares of WEI and worked in sales for the business. Ken’s brother Greg Malone (defendant) also owned 849.5 shares and managed the business. Their mother, Doris, owned the sole remaining share. Prior to undergoing surgery, Doris executed a document that purported to donate her one share equally to both Ken and Greg so that they would both own exactly half of WEI with 850 shares each. The act of donation was signed by Doris, Ken, Greg, and two witnesses, but it was not notarized. Eventually, Ken and Greg realized that there was a problem with the validity of Doris’s donation and disagreed about how to proceed with the corporation. Ken wanted to sell the business, but Greg did not. Greg and Ken both maneuvered to wrest control of the corporation from the other brother. After Greg obtained a proxy from Doris allowing him to vote her share, Greg was able to oust Ken as an officer. Ken filed several actions against Greg and WEI, including seeking a judgment that would declare that the brothers were each 50 percent owners of the corporation based upon Doris’s transfer of her share, and that Greg’s actions in voting Doris’s share as her proxy were therefore invalid. Ken’s various actions were consolidated, with the primary issue resting on whether Doris’s donation of her one share to Ken and Greg equally had been valid. The trial court found that the donation had failed to meet the statutory requirements for a donation of incorporeal movables and was therefore invalid. Ken appealed.
Rule of Law
Holding and Reasoning (Stewart, 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 705,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead 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.Learn about our approachRead more about Quimbee
Here's why 705,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,300 briefs, keyed to 983 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.