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Zetlin v. Hanson Holdings, Inc.

New York Court of Appeals
48 NY.2d 684, 421 N.Y.S.2d 877, 397 N.E.2d 387 (1979)



Zetlin (plaintiff) owned two percent of the outstanding shares of Gable Industries, Inc. (Gable). Hanson Holdings, Inc. (Hanson) (defendant) owned 44.4 percent of Gable. Hanson sold its interest to Flintkote Co. for a premium of $15 per share, about twice what the stock was going for on the open market. The 44.4 percent interest acquired by Flintkote gave it a controlling interest in Gable. Zetlin brought suit, seeking to obtain part of the premium paid by Flintkote to Hanson. The lower court found in favor of Hanson. Zetlin appealed.

Rule of Law


Holding and Reasoning (Memorandum)

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