How did the court “characterize” and “classify” the shares of stock that Cale and Shirley Case held jointly?

Does the fact that Brock owned shares in Sunglow establish a conflict of interest? Why or why not?

Milena Weintraub and Larry Griffth were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffth owned 51 percent of the stock and Weintraub 49 percent. Weintraub managed the casino, which Griffth typically visited once a week. At the end of 2012, an accounting audit showed that the cash on hand was less than the amount posted in the casino’s books. Later, more shortfalls were discovered. In October 2014, Griffth did a complete audit. Weintraub was unable to account for $200,500 in missing cash. Griffth then took all of the casino’s most recent profits, including Weintraub’s$90,447.20 share, and, without telling Weintraub, sold the casino for $400,000 and kept all of the proceeds. Weintraub filed a suit against Griffth, asserting a breach of fiduciary duty. Griffth countered with evidence of Weintraub’s misappropriation of corporate cash. (See Duties and Liabilities of Shareholders.)

(c) A third group will discuss whether Weintraub or Griffith violated any ethical duties to each other or to the corporation

Milena Weintraub and Larry Griffth were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffth owned 51 percent of the stock and Weintraub 49 percent. Weintraub managed the casino, which Griffth typically visited once a week. At the end of 2012, an accounting audit showed that the cash on hand was less than the amount posted in the casino’s books. Later, more shortfalls were discovered. In October 2014, Griffth did a complete audit. Weintraub was unable to account for $200,500 in missing cash. Griffth then took all of the casino’s most recent profits, including Weintraub’s$90,447.20 share, and, without telling Weintraub, sold the casino for $400,000 and kept all of the proceeds. Weintraub filed a suit against Griffth, asserting a breach of fiduciary duty. Griffth countered with evidence of Weintraub’s misappropriation of corporate cash. (See Duties and Liabilities of Shareholders.)

(b) The second group will decide how this dispute should be resolved and who should pay what to whom to reconcile the finances.

Milena Weintraub and Larry Griffth were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffth owned 51 percent of the stock and Weintraub 49 percent. Weintraub managed the casino, which Griffth typically visited once a week. At the end of 2012, an accounting audit showed that the cash on hand was less than the amount posted in the casino’s books. Later, more shortfalls were discovered. In October 2014, Griffth did a complete audit. Weintraub was unable to account for $200,500 in missing cash. Griffth then took all of the casino’s most recent profits, including Weintraub’s$90,447.20 share, and, without telling Weintraub, sold the casino for $400,000 and kept all of the proceeds. Weintraub filed a suit against Griffth, asserting a breach of fiduciary duty. Griffth countered with evidence of Weintraub’s misappropriation of corporate cash. (See Duties and Liabilities of Shareholders.)

(a) The first group will discuss the duties that these parties owed to each other and determine whether Weintraub or Griffith, or both, breached those duties.