Steelman v. Mallory

BAKES, Justice.

Steelman, a minority shareholder, filed a complaint alleging breach of fiduciary duty by the majority shareholders/directors in the management of L.D.K., Inc., a closely held corporation. Mallory, Jensen and L.D.K., Inc., appeal from a judgment awarding Steelman $10,220.22 in damages, $2,145 in attorney fees, and $264.30 in costs. We affirm in part and reverse in part.

In 1973 Mallory, Jensen and Steelman incorporated L.D.K., Inc., as an Idaho corporation. Each of the three contributed equally to the assets of the corporation, each received an equal number of shares, and each…