SYSTEM DYNAMICS INTERN., INC. v. Boykin

System Dynamics International, Inc. ("SDI"), sued Dr. William H. Boykin, Jr., alleging that Boykin had breached his fiduciary duty as a shareholder, director, and chief executive officer of SDI. SDI sought from Boykin reimbursement of funds that SDI had paid to the Internal Revenue Service pursuant to an audit and a subsequent tax assessment. The assessment was a result of certain payments Boykin had had SDI make to Boykin as CEO of SDI. The IRS disallowed a portion of the payments as business deductions and assessed SDI accordingly.

Boykin asserted the statute of limitations as a defense…