Sax v. Sax

The trial court dismissed a stockholder’s suit brought by the plaintiff on behalf of the corporate defendant against the individual defendants on the grounds that plaintiff was guilty of “unclean hands.” We find that while the plaintiff technically had a right to prosecute this action, the trial court under the unique circumstances present here did not abuse its discretion in dismissing his claims. We hold, however, that under the particular circumstances the other stockholders should have been given notice and an opportunity to intervene.

The nominal plaintiff, Jerome M. Sax (hereinafter…