Nature of the Case
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Facts
Corbo Jewelers (the firm) was organized in 1946 by Michael and Dominic Corbo and Gerald Bonavita (P). They were the primary incorporators of the firm. From 1984 on, Alan Corbo (D), who is the son of Michael Corbo, and the P each, owned a 50% share of the firm. P is now aged and retired, but both he and his wife continue to own a minority of shares in the firm (since they sold part of their assets over the years). D now runs the firm. The firm is doing well financially, and D and his various relatives who he employs take a high salary from the operation. Due to his age, P wanted to have D or the corporation but out his minority shares in the firm so that he could use the money for other purposes. P also wanted the D to issue dividends. D refused to buy out the P's minority shares and refused to issue dividends. P sues and alleges deadlock and oppression. Judgment for P. The firm or D is ordered to buy out P's shares in the firm due to oppression of the minority shareholder.
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