Supreme Court of Delaware

In a dispute over whether Benihana, Inc. was authorized to issue $20 million in preferred stock and whether the board of directors acted properly in approving the transaction, the court affirms the court of chancery's judgment where it correctly held that the stock issuance was lawful and that the directors did not breach their fiduciary duties.

Appellate Information

• Decided 08/24/2006
• Published 08/28/2006

Judges

• BERGER, Justice:, Before STEELE, Chief Justice, HOLLAND and BERGER, Justices.

Court

• Supreme Court of Delaware

Counsel

• For Appellant:
  
• C. Barr Flinn, Elena C. Norman and D. Fon Muttamara-Walker of Young Conaway Stargatt & Taylor, L.L.P., Wilmington, DE;  Jonathan Rosenberg (argued) and Alexandra A. Lewis of O'Melveny & Myers, L.L.P., New York City, of counsel, for appellant.


• For Appellees:
  
• Gregory V. Varallo (argued), Lisa Zwally Brown and Geoffrey G. Grivner of Richards, Layton & Finger, P.A., Wilmington, DE;  Jeffrey A. Tew, and Dennis Nowak of Tew Cardenas, L.L.P., Miami, FL, of counsel, for appellees Benihana, Inc., Norman Becker, Darwin Dornbush, Max Pine, Yoshihiro Sano, Joel Schwartz, Robert B. Sturges and Takamori Yoshimoto., John G. Harris of Reed Smith, L.L.P., Wilmington, DE;  Alan H. Fein (argued) of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., Miami, FL, of counsel, for appellees BFC Financial Corporation and John E. Abdo.