Pedro v. Pedro

489 N.W.2d 798 (1992)

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Nature of the Case

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Facts

Alfred (P), Carl (D) and Eugene (D) each owned a 1/3rd interest in Pedro Companies. They were all brothers. Annual sales were $6 million. Alfred was fired in 1987 at the age of 62. In 1968 all the stockholders entered into an agreement to purchase a shareholder's stock upon death, or when a living shareholder wished to sell his shares. In 1975, the father died, and the company purchased his stock from his estate. In 1979, the agreement was modified to reduce the purchase price of the shares. Relations went south after Alfred discovered a $330,000 discrepancy in the checking account. After issues were looked into a $270,000 discrepancy still remained. Alfred insisted that an accountant be retained to investigate. After a month with no results, Carl and Eugene dismissed the accountant. The final result was that there was a shortfall of between $140,000 and $147,000. A second accountant was hired and confirmed that $140,000 was missing. That accountant testified that he was refused access to numerous documents and that there were more than 20 leads that needed to be investigated. Alfred was placed on a mandatory leave of absence and then got written notice in December 1987 that he was fired. Alfred (P) sued, and the court (eventually after an appeal and remand) awarded P $766,582.33 as damages for his ownership plus interest of $58,260.69. P was also awarded $563,417.27 for a breach of fiduciary duties with an additional award of $68,690.05 in interest. The trial court also found that P had a lifetime employment contract with TPC and damages for wrongful termination were $256,740 with interest of $31,750.37. P also got attorney fees of $200,000 and expenses. This appeal resulted.