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HILL ON BEHALF OF REPUBLIC FIRST BANCORP v. COHEN

No. 22-2023.

40 F.4th 101 (2022)

Vernon W. HILL, II; Brian Tierney; Barry Spevak, Derivatively ON BEHALF OF REPUBLIC FIRST BANCORP INC. v. Andrew B. COHEN; Lisa Jacobs; Harry Madonna; Harris Wildstein; Republic First Bancorp Inc., Andrew B. Cohen, Lisa Jacobs, Harry Madonna, Harris Wildstein, Appellants.

United States Court of Appeals, Third Circuit.

Filed: July 6, 2022.

Attorney(s) appearing for the Case

Andrew M. Erdlen , John S. Summers , Hangley Aronchick Segal Pudlin & Schiller, One Logan Square, 18th & Cherry Streets, 27th Floor, Philadelphia, PA 19103, Frank Olander , Michael E. Swartz [ARGUED], Schulte Roth & Zabel, 919 Third Avenue, New York, NY 10022, Counsel for Appellants.

Amit Agarwal [ARGUED], Holland & Knight, 315 South Calhoun Street, Suite 600, Tallahassee, FL 32301, Tracy Z. Quinn , Carolyn P. Short , Holland & Knight, 2929 Arch Street, Suite 800, Philadelphia, PA 19104, Martin L. Seidel , Holland & Knight, 31 West 52nd Street, 12th Floor, New York, NY 10019, Counsel for Appellees.

Before: JORDAN, PORTER, and PHIPPS, Circuit Judges.

OPINION OF THE COURT

Under Pennsylvania law, a court has the power to appoint a custodian to take control of a corporation if the corporation's board of directors is deadlocked or if the directors' acts are illegal, oppressive, fraudulent, or wasteful. 15 Pa. Cons. Stat. §§ 1767(a)(3), 1981(a). But that...

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