Black v. Dist. Ct. (goodchild)

Summary

The Nevada Supreme Court held that the shareholders' breach‑of‑fiduciary‑duty claim against the directors is a derivative claim, making it property of Globe's Chapter 7 bankruptcy estate and depriving the shareholders of standing. Accordingly, the district court should have granted the directors' motion to dismiss, and the Court issued a writ of prohibition directing the district court to vacate its order and dismiss the claim. The decision rests on the Delaware Tooley test and federal bankruptcy law.