Barnes v. Andrews

Andrews (defendant) served less than a year as a director of Liberty Starters Corporation, attending only one of two board meetings held during his tenure and relying on informal conversations with Liberty's president, a personal friend, rather than asking probing questions about the company's affairs. After Liberty failed and its receiver, Barnes (plaintiff), sold its assets for a small profit, Barnes sued Andrews in equity, alleging his inattention to waste and employee incompetence contributed to the company's losses.