Court considers canceled shares as ‘continuing wrong’

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted August 4, 2021 11:40 AM

Richard Deibel relied on the continuing-wrong doctrine to avoid a two-year statute of limitations in a $2.5 million dispute about whether a 1992 settlement agreement obligated him to surrender his shares in Hy-Pro Corp. He kept the stock certificates, and that looked like a smart move 25 years later when Hy-Pro was sold for more than $20 million.Deibel insisted he still owned 12.5% of the business, even though Hy-Pro, a Subchapter S company incorporated in Indiana, canceled his shares in 1993 and stopped sending him tax …

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