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BENEVILLE v. YORK

Civil Action No. 17638.

769 A.2d 80 (2000)

Edward S. BENEVILLE, Jr., individually and derivatively on behalf of Carnet Holding Corporation, a Delaware corporation, Plaintiff, v. Michael YORK and Eli Dabich, Jr., Defendants. and Carnet Holding Corporation, a Delaware corporation, Nominal Defendant.

Court of Chancery of Delaware, New Castle County.

Decided: July 10, 2000.

Attorney(s) appearing for the Case

Francis G.X. Pileggi, Robert M. Unterberger, of Manta and Welge, Wilmington, Delaware, for Plaintiffs.

James C. Strum, of Stradley Ronon Stevens & Young, of Wilmington, Delaware, for Defendant Michael York.

Kurt M. Heyman, Patricia L. Enerio, of the Bayard Firm, Wilmington, Delaware, for Defendant Eli Dabich, Jr.

Anne C. Foster, Thad J. Bracegirdle, Michael J. Merchant, of Richards, Layton & Finger, Wilmington, Delaware, for Nominal Defendant.

OPINION

STRINE, Vice Chancellor.

Plaintiff Edward S. Beneville, Jr. has filed this derivative action, in which he alleges that two of the then-directors of CARNET Holding Corporation, defendants Michael York and Eli Dabich, Jr., breached their fiduciary duties as directors of CARNET. York and Dabich, the complaint asserts, caused CARNET to enter into a technology licensing and marketing agreement (the "Marketing Agreement") with a subsidiary of another corporation...

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