The issue in this corporate dissolution was the value of Enrique Garcia’s 50% interest in a closely held corporation, G&G Fashion Design Inc., which operated two clothing stores.
Trial court accepted value of a real arm's length offer as evidence for valuation, which held.
At issue is breach of fiduciary duties of care and loyalty by failing to obtain the highest available price for shareholders in the sale of Frederick's.
This breach of fiduciary duty case came before the Delaware Court of Chancery on defendants' motion to dismiss.
Decedent, the widow of Frederick N. Mellinger, held Frederick's of Hollywood stock in three capacities: (1) as income beneficiary of a QTIP irrevocable marital trust her predeceased husband established under IRC § 2056(b)(7); (2) as beneficiary of a revocable trust that she established herself; and (3) 50 shares outright.
At issue is the valuation of the decedent's stock at death.