Diversion of profits supports breach of fiduciary duty, shareholder claims

Commercial Litigation

By Paul B. Porvaznik

Paul B. Porvaznik is an attorney at Bielski Chapman, Ltd. and practices primarily in the areas of commercial litigation, landlord-tenant law, mechanic’s liens and post-judgment enforcement.

Posted April 27, 2021 11:53 AM

The case of Roberts v. Zimmerman, et al., 2021 IL App (2d) 191088-U, provides a useful primer on the pleadings and evidence required to sustain a breach of fiduciary and shareholder oppression claim against a majority shareholder in a close corporation dispute.The case involved three separate but related lumber buying companies: Outstanding, Our Wood Loft, Inc., or OWL, and Lake City Hardwood. OWL is owned one-third by the two plaintiffs and two-thirds by the defendant majority shareholder. Lake City is owned by the …

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