Mathis v. ERA FRANCHISE SYSTEMS, INC.

KITCHENS, Justice,

for the Court.

¶ 1. This is a case involving the attempt of a shareholder in a closely-held corporation to bring derivative claims as a direct action. Finding that the trial judge did not err in dismissing the plaintiffs derivative claims for lack of standing, we affirm.

Facts and Procedural History

¶ 2. In 2000, Vennit B. Mathis, II, purchased a fifty percent equity interest in Real Estate Professionals, LLC (“REP”), a real estate brokerage firm. At the time of Mathis’s acquisition, REP was a licensed ERA franchise. In connection with a franchise agreement between REP and ERA…