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KRONENBERG v. KATZ

C.A. No. 19964.

872 A.2d 568 (2004)

William M. KRONENBERG, III, Frank A. Piliero, David M. Rosenberg, and Community Sports Partners, II, LLC, Plaintiffs, v. Samuel P. KATZ, and Community Sports Partners, LLC, Defendants. Samuel P. Katz, and Community Sports Partners, LLC, Counterclaim Plaintiffs, and Entersport Capital Advisors, Inc., Additional Counterclaim Plaintiff, v. William M. Kronenberg, III, Frank A. Piliero, David M. Rosenberg, and Community Sports Partners, II, LLC, Counterclaim Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: May 19, 2004.

Attorney(s) appearing for the Case

David C. McBride, Esquire, Martin S. Lessner, Esquire, Jessica S. Davis, Esquire, Young Conaway Stargatt & Taylor, LLP, Wilmington, Delaware, Attorneys for the Plaintiffs.

Gregory V. Varallo, Esquire, C. Malcolm Cochran, IV, Esquire, Kelly A. Green, Esquire, Richards, Layton & Finger, P.A., Wilmington, Delaware, Attorneys for the Defendants, Counterclaim Plaintiffs.

OPINION

STRINE, Vice Chancellor.

Defendant Samuel Katz met plaintiff William Kronenberg in the late 1990s. Kronenberg admired Katz and became a large contributor to Katz's campaign for Mayor of Philadelphia. Eventually, Katz and Kronenberg discussed going into business together. At that time, Katz had businesses—EnterSport Capital Advisors, Inc. ("EnterSport") and American Skating, LLC—that were focused on making money through the stimulation...

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