Perlman v. Feldmann
United States Court of Appeals for the Second Circuit
219 F.2d 173 (2d Cir. 1955)
Russell Feldmann (defendant) was the majority stockholder in the Newport Steel Corporation (Newport). During the Korean War, there was a severe shortage of steel supply, making Newport very valuable. Feldmann, taking advantage of the shortage, sold his controlling interest to Wilport Company (Wilport) for a premium price. Newport stockholders (plaintiffs) brought a derivative suit against Feldmann seeking accounting for and restitution of Feldmann’s gains in the sale. The plaintiffs contended that the premium Wilport paid included a corporate asset—the ability to control production of steel in a time when supply was very low. They argued that this power was held in trust for Newport by Feldmann as its fiduciary.
Rule of Law
Holding and Reasoning (Clark, C.J.)
Dissent (Swan, 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 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 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.