Harrington v. Batchelor

How courts have described this case

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

• holding that a plaintiff may assert a direct action when there is a special duty owed even if the harm otherwise flows to the company
• explaining that “[t]he defendants sought dismissal of the action, contending that the stated claims could only be brought by a derivative action on behalf of the corporation”
• applying only the direct harm test and stating that a shareholder can still maintain a direct action if there is a special injury or specific and separate duty owed
• “[A] shareholder can sue for breach of [a] contract to which he is a party, even if he has not suffered an injury separate and distinct from that suffered by other shareholders.” (alterations in original

Source: CourtListener parenthetical corpus (CC0).