Johnston v. Greene

Southerland, Chief Justice:

The ultimate question in this case is the fairness of a transaction between a corporation and its president and dominating director. The court below held that he had appropriated for himself a corporate opportunity belonging to his corporation.

The pertinent facts, either uncontroverted or found by the Chancellor, are as follows:

Airfleets, Inc., is a Delaware corporation, organized in 1948 as a wholly owned subsidiary of Consolidated Vultee Aircraft Corporation (called “Convair”). Convair sometime thereafter distributed all of the Airfleets stock to its own…