Court of Appeal of California
201 Cal. Rptr. 676 (1984)
Paul (plaintiff) and Maria Hug (defendant) were married in 1972, when Paul took a position with Amdahl Corporation (Amadahl). Amdahl had a plan for offering stock options to important employees for the primary purpose of recruiting and retaining high-quality employees, as well as providing an incentive for performance. In 1972, Paul received a stock option to purchase 1,000 shares of Amdahl stock at $20 per share. In 1974, that stock option was modified to provide Paul with the option to purchase 1,000 shares of Amdahl stock at $1 per share. Additional stock options were granted in 1974 to purchase another 1,300 shares at $1 per share and in 1975 to purchase 800 shares at $5 per share. Each of the stock options was required to be exercised over a four-year period. In 1976, Paul and Maria were separated. The trial court heard evidence as to the purpose of the stock options and determined that the stock options were granted primarily by Amdahl in order to initially recruit Paul in 1972 and then to compensate him for quality performance during his employment. The trial court apportioned the stock options as of the date Paul began employment with Amdahl, giving Maria a substantial interest in the stock options. Paul appealed the trial court's ruling.
Rule of Law
Holding and Reasoning (King, 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 219,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 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.