Schrage v. Schrage
The court held that the trial court had jurisdiction to order the winding-up and dissolution of the five limited-liability companies the parties stipulated to include in the statutory buy-out.
Date Filed: September 22, 2021
Case Name: Schrage v. Schrage
Case Number: B298119
Court: California Court of Appeal, Second Appellate District, Division Seven
(‘The Court holds that the trial court possessed jurisdiction to order the winding‑up and dissolution of the five limited‑liability companies that the parties stipulated to include in the statutory buy‑out proceeding, and therefore the alternative decree of dissolution stands.\u202fIt also holds that Leonard’s breach‑of‑fiduciary‑duty claim is a derivative action, so he lacks standing to sue as an individual; the judgment awarding him compensatory and punitive damages is reversed.\u202fThis decision confirms that appellate courts will enforce dissolution orders over entities added by stipulation in a buy‑out and reinforces the requirement that fiduciary‑duty claims against closely‑held entities must follow the derivative‑action prerequisites.’, ‘e3bfa3cf’)
This case summary was prepared for educational purposes. For the authoritative version, please refer to the full opinion or the official California Courts website.