Beachcomber Management Crystal Cove, LLC v. Superior Court (Salisbury)
C.A. 4th; G054078 The Fourth Appellate District granted a petition for writ of mandate. The court held that the trial court erred in failing to assess…
July 31, 2017 at 05:21 PM
4 minute read
C.A. 4th;
G054078
The Fourth Appellate District granted a petition for writ of mandate. The court held that the trial court erred in failing to assess a motion for disqualification under the special standards applicable to such a motion in the context of a shareholder derivative action.
Investors Douglas Salisbury and others filed a shareholder derivative action on behalf of Beachcomber at Crystal Cove, LLC (Crystal Cove) against managing member Beachcomber Management Crystal Cove, LLC (BMCC) and its managing member, Douglas Cavanaugh (defendants). The complaint named Crystal Cove as a nominal defendant and alleged claims for fraud, breach of fiduciary duty, and abuse of control, among others. Defendants hired the law firm of Kohut & Kohut LLP to represent them. Crystal Cove hired independent counsel.
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