Wollman v. Littman

The Nierenbergs and Littmans (defendants) each owned half of a close corporation and split its board evenly; the Nierenbergs were affiliated with the corporation's main supplier, while the Littmans had built its customer base. After the Littmans sued the Nierenbergs for allegedly diverting the corporation's customers to their own affiliated company, the Nierenbergs (plaintiffs) sought dissolution, arguing the litigation itself proved the factions' differences were irreconcilable and corporate governance impossible. The trial court agreed and ordered dissolution.

Whether the existence of irreconcilable differences between factions of a deadlocked board by itself constitutes grounds for court-ordered dissolution.