Balvik v. Sylvester
North Dakota Supreme Court
411 N.W.2d 383 (1987)
Elmer Balvik (plaintiff) and Thomas Sylvester (defendant) formed a partnership, later incorporated as Weldon Electric, with Sylvester holding 70% of the stock and Balvik 30% in proportion to their contributions; Balvik had quit his prior job to join the venture. After a falling out, Sylvester fired Balvik as an employee and later used his majority vote to amend the bylaws, remove Balvik from the board, and cut off his compensation entirely. Balvik sued for dissolution or payment of the true value of his stock, and the trial court found oppression and ordered dissolution; Sylvester appealed.
Whether a minority shareholder is entitled to a remedy when a majority shareholder uses oppressive tactics, such as termination and board removal, to defeat the minority shareholder's reasonable expectations of participation in the corporation.