Phillips v. Knight

This is an appeal from an order of the Circuit Court of Walker County finding that a settlement agreement existed between the parties and ordering it enforced. Knight and Phillips were the sole incorporators, officers, directors, and shareholders of Video, Inc., and Earthworks, Inc., with each owning 50% of the outstanding stock of both corporations.

Phillips was first to file an action he filed his action in Jefferson County Circuit Court on July 9, 1985, alleging, among other things, that Knight had breached his fiduciary duties to the two corporations.1 Knight filed a complaint two days…