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IN RE MI-LOR CORP.

Nos. 02-2578, 02-2659.

348 F.3d 294 (2003)

In re MI-LOR CORP.; Professional Brushes, Inc., Debtors. James M. Liston; John J. Monaghan, as Creditors Trustees, Plaintiffs, Appellants, Cross-Appellees, v. Robert Gottsegen; Michael Gottsegen; Lori Gottsegen Zinman; Dorothy Gottsegen, Defendants, Appellees, Cross-Appellants.

United States Court of Appeals, First Circuit.

Decided November 3, 2003.

Attorney(s) appearing for the Case

Howard M. Brown, with whom Frank F. McGinn and Bartlett Hackett Feinberg P.C. were on brief for appellants, cross-appellees.

Stephen F. Gordon, with whom Ronald W. Dunbar, Jr., Leslie F. Su, Gordon Haley LLP and Henry Mark Holzer were on brief for appellees, cross-appellants.

Before BOUDIN, Chief Judge, SILER, Circuit Judge, and LYNCH, Circuit Judge.

LYNCH, Circuit Judge.

This case explores the Massachusetts law of close corporations and the ability of those corporations to give releases of claims of self-dealing. A jury found that the defendants, an officer/director and the controlling shareholders in two close family corporations, had unjustly enriched themselves from corporate funds in the sum of over $380,000. This appeal concerns whether that liability was extinguished by a release in favor of the defendants...

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