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Burdick v. Burd Brothers, Inc.

Ohio Ct. App.April 29, 2019No. CA2018-07-054Cited 6 times

Case Details

Judge(s)
Ringland
Status
Published
Procedural Posture
appeal

Related Laws

No specific laws identified for this ruling.

Excerpt

Ex-employee and wife, shareholders in family-owned trucking business, appeal court decision dismissing claims for attorney fees and for the value of alleged shareholder benefits, a company car, which the couple alleged were provided to other shareholders but denied to them following the ex-employee's termination. Shareholders had no statutory right to attorney fees limited to demonstrating bad faith. No bad faith where ex-employee sent one attorney letter demanding corporate records, company responded by stating that production of the records was unnecessary and invited additional discussion. Ex-employee did not respond filed a complaint over a year later. Shareholders failed to prove that company cars were shareholder benefits as opposed to employment benefits. Ex-employee had been chief financial officer and referred to his and wife's vehicle as part of "employment compensation package."

What This Ruling Means

**What Happened:** A former employee and his wife sued their family trucking company, Burd Brothers, Inc., after the employee was fired. The couple were also shareholders in the business. They claimed the company unfairly denied them benefits that other shareholders received, specifically access to a company car. They also wanted the company to pay their attorney fees and demanded to see corporate records. **What the Court Decided:** The court dismissed their case entirely. The judges ruled that as shareholders, the couple had no automatic right to have their attorney fees paid by the company unless they could prove the company acted in bad faith. The court found no evidence of bad faith - noting that the couple had only sent one letter through their attorney requesting company records, which wasn't enough to show wrongdoing. **Why This Matters for Workers:** This case shows that being both an employee and a shareholder in a family business doesn't guarantee special protections when employment ends. Workers in family-owned companies should understand that shareholder rights and employee rights are separate legal issues. If you're terminated from a family business where you also own shares, you'll need strong evidence of deliberate wrongdoing to recover attorney fees or force the company to provide shareholder benefits.

This summary was generated to explain the ruling in plain English and is not legal advice.

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