Alford v. Shaw
Supreme Court of North Carolina
358 S.E.2d 323 (1987)
Relevant factsFree
Minority shareholders (plaintiffs) of All American Assurance Company sued corporate directors (defendants) derivatively for breach of fiduciary duty; the corporation's special litigation committee recommended terminating the litigation, and the North Carolina Supreme Court had previously affirmed summary judgment for the defendants based on that recommendation before granting rehearing.
IssueFree
Whether a special litigation committee's decision to terminate a minority shareholder's derivative action against corporate directors is binding upon the courts.