Glenn v. Hoteltron Systems Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that shareholder could not individually bring breach of fiduciary duty cause of action arising out of diversion of corporation’s assets by a corporate fiduciary
• concluding that attorneys’ fees expended on a corporation’s behalf should be paid by the corporation and that New York Business Corporation Law § 626(e) “does not authorize the imposition of such expenses on the losing party”
• holding that recovery of corporate property improperly used for the benefit of a corporate officer/shareholder in violation of his fiduciary duties is a claim of the corporation, and any recovery must go to the corporation, not to the “innocent shareholder”
• awarding damages “directly to a shareholder could impair the rights of creditors whose claims may be superior to that of the innocent shareholder.”
• recovery of corporate property improperly used for the benefit of a corporate officer/shareholder in violation of his fiduciary duties is a claim of the corporation, and any recovery must go to the corporation
• “[W]here . . . the plaintiff sues in an individual capacity to recover damages resulting in harm, not to the corporation, but to individual shareholders, the suit is personal, not derivative, and it is appropriate for damages to be awarded directly to those shareholders.”

Source: CourtListener parenthetical corpus (CC0).