Weltzin v. Nail

618 N.W.2d 293 (2000)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Ps are shareholders of LaPorte City Cooperative Elevators. Ps brought a shareholder’s derivative lawsuit against Ds. Ps allege that manager Michael Nail committed a negligent breach of his fiduciary duties and made fraudulent misrepresentations. They seek compensatory and punitive damages from Nail for his actions. Ps also contend that several former directors and the company’s loan officer committed negligence in the performance of their duties. For these actions, Ps seek money damages. Ps filed a demand for jury trial with their petition. Nail answered with the affirmative defense of comparative fault, including a failure to mitigate damages, and asserted he was immune from liability for actions taken in performance of his duties. Ds asserted their immunity as well. Ds motioned to strike the jury demand made by Ps. The district court sustained Ds motion to strike the Ps demand for a jury trial. The court explained that a shareholder’s derivative lawsuit could only be brought in equity and, therefore, no jury was warranted. Ps then timely filed an application for interlocutory appeal on the jury issue. The shareholders argue that because their suit raises legal issues and remedies, they are entitled to a jury determination.