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HUGHES TOOL COMPANY v. FAWCETT PUBLICATIONS, INC.

297 A.2d 428 (1972)

HUGHES TOOL COMPANY, a Delaware corporation, Plaintiff, v. FAWCETT PUBLICATIONS, INC., a Delaware corporation, and Noah Dietrich, Defendants. ROSEMONT ENTERPRISES, INC., a Nevada corporation, Plaintiff, v. FAWCETT PUBLICATIONS, INC., a Delaware corporation, and Noah Dietrich, Defendants.

Court of Chancery of Delaware, New Castle.

October 26, 1972.

Attorney(s) appearing for the Case

S. Samuel Arsht, David A. Drexler, Lewis S. Black, Jr., and Lawrence C. Ashby, of Morris, Nichols, Arsht & Tunnell, Wilmington, and Davis & Cox, New York City, for plaintiffs.

E. D. Griffenberg, Jr., and Peter M. Sieglaff, of Potter Anderson & Corroon, Wilmington, for defendant Fawcett Publications, Inc.

Charles F. Richards, Jr., and R. Franklin Balotti, of Richards, Layton & Finger, Wilmington, and Steptoe & Johnson, Washington, D. C., for defendant Noah Dietrich.

MARVEL, Vice Chancellor:

For a period of approximately thirty-two years prior to 1957 the defendant Noah Dietrich was first an employee and later a director and the executive vice-president of Hughes Tool Company, one of the plaintiffs in the above consolidated action. In such latter positions of trust and confidence Mr. Dietrich became a close personal associate of and a financial adviser to Howard R. Hughes, the sole stockholder of Hughes Tool Company, who apparently...

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