Schoon v. Smith
Delaware Supreme Court
953 A.2d 196 (2008)
- Written by Rose VanHofwegen, JD
Facts
Richard Schoon (plaintiff) was a director, but not a stockholder, of Troy Corporation when he brought a derivative action against chief executive officer Daryl Smith, three other directors Smith elected, and Troy (together, defendants). Steel Investment Company, a corporation that owned voting stock in Troy, elected Schoon. Schoon claimed that the other directors were beholden to Smith, allowing him to entrench himself in control and thwart transactions that would benefit Troy and its other stockholders. Because Troy incorporated in Delaware, Schoon sued in Delaware Chancery Court. Meanwhile, Steel sued Troy in a separate chancery court lawsuit based on other matters and requested that Troy produce books and records. The chancery court dismissed Schoon’s lawsuit on the ground that he lacked standing to bring a derivative action because he was not a shareholder. Schoon appealed.
Rule of Law
Issue
Holding and Reasoning (Ridgely, J.)
What to do next…
Here's why 805,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 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.
