Arnold B. Glenn, as Trustee, and Herbert S. Kulik

Summary

The New York Court of Appeals affirmed the Appellate Division's order in three consolidated shareholder derivative actions, holding that damages belong to the injured corporation, that attorneys' fees are payable from the corporation's award, that a speculative royalty award is improper, and that the trial court's method of calculating diverted profits was correct. The Court rejected the argument that a closely held corporation requires a different rule because the wrongdoer shareholder would indirectly benefit from the corporate award.