Meiselman v. Meiselman
Supreme Court of North Carolina
307 S.E.2d 551 (1983)
H.B. Meiselman gave majority ownership of the family corporations to his son Ira (defendant) over religious objections to his other son Michael's (plaintiff) conduct, and Ira then hired a management company he solely owned to run the family corporations, diverting profits away from them and reducing Michael's share; Ira eventually also terminated Michael's employment and benefits. Michael sued for breach of fiduciary duty and sought equitable remedies, but the trial judge, applying a standard requiring proof that Ira egregiously abused or took unfair advantage of Michael, denied relief; the North Carolina Court of Appeals reversed in part and remanded, and the case reached the state supreme court on the losing side's automatic right of appeal.
Whether a minority shareholder in a close corporation may be entitled to equitable relief if the majority shareholder's conduct endangers the minority shareholder's rights or interests.