Logourl black

Pepsi-Cola Bottling Co. v. Handy

Court of Chancery of Delaware
2000 WL 364199 (2000)


Facts

Randall Handy, officer, director, and shareholder of Handy Realty, Inc., contracted to purchase a parcel of real property for development on behalf of himself, Michael Ginsburg, and Larry McKinley. Handy then learned that the property contained wetlands, which negatively affected the property’s value and development potential. The Pepsi-Cola Bottling Company (Pepsi) (plaintiff) acquired an option to purchase the property from Handy, who did not disclose the existence of the wetlands. Handy, Ginsburg, and McKinley then formed a limited liability company (LLC), Willow Creek. Willow Creek purchased the property for $174,000, and four months later sold the property to Pepsi for $455,000. After learning of the wetlands, Pepsi brought an action for rescission and damages against Handy Realty, Inc., Willow Creek, Handy, Ginsburg, and McKinley (defendants). Handy, Ginsburg, and McKinley (Handy) moved for dismissal of Pepsi’s claims against them, arguing that Pepsi cannot recover against individual members of the LLC.

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 (Jacobs, V.C.)

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.

Here's why 73,000 law students rely on our case briefs:

  • Reliable - written by law professors and practitioners not other law students.
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your class - works on your mobile and tablet.
  • 10,442 briefs - keyed to 137 casebooks.
  • Uniform format for every case brief.
  • Written in plain English - not in legalese and not just repeating the court's language.
  • Massive library of related video lessons - and practice questions.
  • Ability to tag case briefs in an outlining tool.
  • Top-notch customer support.
Start Your Free Trial Now