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Corporations
Breach of Contract
Breach of Fiduciary Duty

Schwartz, et al. v. Guindi, et al.

Published: Feb. 18, 2004 | Result Date: Jan. 8, 2004 | Filing Date: Jan. 1, 1900 |

Case number: CV011146 Bench Decision –  $2,931,900

Judge

John A. Sutro Jr.

Court

Marin Superior


Attorneys

Plaintiff

Steven Dillick


Defendant

David K. Hicks


Facts

A number of investors placed funds with the defendant's (Guindi N. Guindi) corporation, NetCap Holdings Inc. Some of them sued the de facto directors. Dr. Ghafourpar had been invited as guest at meetings regarding a company in formation and future directors agreed that any corporation formed would require Directors' Liability Insurance, which was handled by counsel. Meanwhile, through other counsel, Guindi formed a Delaware corporation, using the same name, told no-one and started receiving investors' funds which vanished in Las Vegas.

Result

The case turned on the differences between Delaware and California Corporate Director Duties during the first 180 days of formation.


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