Jimenez v. Corr

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This case concerned a dispute over the disposition of shares of stock in a family held business after the death of the business’s founding generation. Plaintiff, one of the founder’s children and a stockholder, filed suit after the death of her mother, Norma, to whom shares in the business were transferred upon the founder’s death. Plaintiff alleged that a shareholders’ agreement controlled disposition of Norma’s shares and that the business was required to purchase those shares. Defendants argued that Norma’s estate planning documents controlled the disposition of Norma’s stock, and accordingly, those shares were to go into an inter vivos trust. The circuit court concluded that the shares were to pass to the inter vivos trust established by Norma’s estate planning documents. The Supreme Court reversed, holding that the shareholders’ agreement governed disposition of Norma’s shares of the business’s stock. View "Jimenez v. Corr" on Justia Law