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SOUTHAM v. SOUTH DESPAIN DITCH CO.

No. 20120831.

337 P.3d 236 (2014)

2014 UT 35

Paul SOUTHAM, Plaintiff and Appellant, v. SOUTH DESPAIN DITCH COMPANY, a Utah nonprofit mutual irrigation company, Defendant and Appellee.

Supreme Court of Utah.

August 29, 2014.

Attorney(s) appearing for the Case

Phillip E. Lowry , Salt Lake City, for plaintiff.

Dale B. Kimsey , Sandy, Dean Smith , Midvale, for defendant.

Justice LEE authored the opinion of the Court, in which Chief Justice DURRANT, Associate Chief Justice NEHRING, Justice DURHAM, and Justice PARRISH joined.

Justice LEE, opinion of the Court:

¶ 1 This lawsuit was filed by a predecessor of Paul Southam against South Despain Ditch Company. Southam acquired shares in South Despain in contravention of corporate restrictions on transferability of South Despain shares. When the company sought to enforce those restrictions against Southam, he challenged their enforceability and asserted that their enforcement put South Despain in breach of its obligations in contract, fiduciary...

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