South End Improvement Group, Inc. ex rel. Bank of New York v. Mulliken

This is an appeal and cross appeal arising out of a minority stockholder’s derivative action. The Bank of New York, as Trustee under the Will of C.J. Devine, appeals from a final judgment determining that it lacked standing to bring a derivative suit on behalf of South End Improvement Group, Inc. against appellees, the directors of South End. The directors cross appeal the trial court’s findings against them on the merits of the bank’s action. We reverse on the standing issue but reject the claims on cross appeal.

FACTS

The bank, as trustee under the will of C.J. Devine, owns 204 (22%) of the…