California Court of Appeal

In an executor's suit against defendant for conversion, breach of fiduciary duty and fraud in connection with the sale of decedent's company, trial court's denial of the executor's petition and motion to leave to amend the complaint in the individual action to allege a conspiracy claim against the company's corporate counsel and two attorneys, and the trial court's dismissal of the executor's derivative action against the attorneys on behalf of the company are reversed where: 1) trial court erred in denying the estate leave to amend the complaint to allege a conspiracy claim; 2) the estate has standing to maintain a derivative action on behalf of the company; 3) remand is necessary for further consideration whether the attorneys' inability to disclose privileged information bars the estate's derivative claims against them under McDermott, Will & Emery; and 4) none of the other grounds advanced by the attorneys supports an order sustaining their demurrer to the derivative complaint.

Appellate Information

• Decided 09/03/2010
• Published 09/03/2010

Judges

• PERLUSS

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Leonard S. Sands, Daniel A. Platt