Breach of Fiduciary Duty – Shareholder Oppression

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WI Court of Appeals – District II

Case Name: Lowell Bessette v. David Bessette, et al

Case No.: 2016AP1215

Officials: Reilly, P.J., Gundrum and Hagedorn, JJ.

Focus: Breach of Fiduciary Duty – Shareholder Oppression

Lowell Bessette appeals from an order granting summary judgment to David Bessette (Lowell’s son), Debbie Bessette (David’s wife), Jon Rutten (Lowell’s brother-in-law), Mekco Manufacturing, Inc., and Bessette, LLC (hereinafter collectively “respondents”). Lowell, a minority shareholder in Mekco, brought direct claims for: (1) fraud, (2) breach of fiduciary duty, and (3) shareholder oppression pursuant to WIS. STAT. § 180.1430 (2015-16).  The circuit court concluded Lowell failed to allege fraud with sufficient specificity; his breach of fiduciary duty claim failed because the injuries Lowell alleged were direct injuries to Mekco, not Lowell, and thus he needed to bring a derivative action; and “neither dissolution nor other equitable remedies” were appropriate as to Lowell’s oppression claim.  We affirm.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.