Hatfield v. Steinhoff

The question on this appeal is whether, in the circumstances presented, a majority stockholder in a closely held family corporation may direct by will that an asset of the corporation be distributed to a member of the family who is not a shareholder.

Lonnie D. Hatfield owned 165 shares of stock in City Lumber and Coal Yard, Inc., a Washington corporation, in Dayton. The only other shareholder was his son, Donald J. Hatfield, who owned 35 shares. On February 20,1981, Lonnie Hatfield executed a nonintervention will leaving all of his property to his two children. The will provided:

III

I hereby…