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MIDLAND FOOD SVCS. v. CASTLE HILL HOLDINGS

Civil Action No. 16779.

792 A.2d 920 (1999)

MIDLAND FOOD SERVICES, LLC, Midland Food Services II, LLC, and Midland Food Services III, LLC, Plaintiffs, v. CASTLE HILL HOLDINGS V, LLC, Castle Hill Holdings VI, LLC, Castle Hill Holdings VII, LLC, Ronald F. Saverin, Key Trust Company of Ohio, NA, Janet M. Saverin, Majess, LLC, and Dajust, LLC, Defendants, v. Al Hut, Inc., a Delaware corporation, Counterclaim Defendant.

Court of Chancery of Delaware.

Decided: July 16, 1999.

Attorney(s) appearing for the Case

David J. Ferry, Jr., Ferry & Joseph, Wilmington, DE; of counsel, Gary M. Schildhorn, Douglas N. Candeub, Adelman Lavine Gold and Levin, Philadelphia, PA, for plaintiffs.

Edward P. Welch, Randolph K. Herndon, Laura S. Clare, Skadden, Arps, Slate, Meagher & Flom, Wilmington, DE, of counsel; Richard R. Kalikow, Esther S. Trakinski, Skadden, Arps, Slate, Meagher & Flom, New York City, for defendants.

OPINION

STRINE, Vice Chancellor.

In this action, the Midland Companies seek to recover damages and obtain other relief from their prior owner-operator, Ronald Saverin, and defendants affiliated with Saverin. The Midland Companies base all of their claims on Saverin's actions while he was their owner and operator. Because the current owner of the Midland Companies was assigned its interest from corporations that acquired their shares directly from Saverin...

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