Logourl black
From our private database of 13,000+ case briefs...

McQuade v. Stoneham

Court of Appeals of New York
189 N.E 234 (N.Y. 1934)


Facts

Stoneham (defendant) was the majority owner of National Exhibition Company (NEC). McGraw (defendant) and McQuade (plaintiff) each bought 70 shares of Stoneham’s stock. As part of the purchase, the three entered into a contract that provided that the parties would “use their best endeavors” to make sure that each would remain directors of NEC. There were seven directors in all, the other four of which were selected by and under the control of Stoneham. At a board meeting to elect directors, Stoneham and McGraw did not vote, McQuade voted for himself, and the four other directors voted for a Leo Bondy to succeed McQuade. McQuade brought suit for breach of contract because Stoneham and McGraw allegedly did not use their best efforts to keep him on as a director. The defendants claimed that the contract was void because the duty to act in the best interests of the corporation superseded the contract. The lower courts awarded McQuade damages for the breach.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision. To access this section, start your 7-day free trial of Quimbee for Law Students.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, start your 7-day free trial of Quimbee for Law Students.

Holding and Reasoning (Pound, C.J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, start your 7-day free trial of Quimbee for Law Students.

Concurrence (Lehman, J.)

The concurrence section is for members only and includes a summary of the concurring judge or justice’s opinion. To access this section, start your 7-day free trial of Quimbee for Law Students.

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 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.

  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. Read more about Quimbee.

Here's why 129,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 13,000 briefs, keyed to 177 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.