Dismissal of Shareholder Suit

Shareholder Suit Against Bank Dismissed

Anthony Ostlund wins dismissal of shareholder lawsuit for its banking client

This case involved important corporate governance considerations and convenience and cost issues that AOBL was able to expeditiously and successfully resolve in favor of our client.” –-Shannon Awsumb, Attorney for client

Client Issue

Our client is a Delaware corporation that has its headquarters in North Dakota.  One of its stockholders, who was a former Illinois resident, filed a lawsuit in Illinois state court, demanding broad access to several years’ worth of our client’s business records.  The stockholder was trying to inconvenience our client and evade applicable Delaware corporate laws that govern and restrict the scope of such actions.

The Anthony Ostlund Approach

Anthony Ostlund moved to dismiss the stockholder’s improper records inspection action based on consideration of several important private and public interest factors, including the inconvenience of the Illinois forum, the lack of a connection between the stockholder action and the state of Illinois, and Delaware courts’ strong interest in resolving disputes involving its businesses and corporate laws. 

Results Achieved

An Illinois judge from Cook County Circuit Court, Chancery Division, agreed with Anthony Ostlund’s argument that Illinois was an inconvenient forum under the doctrine of forum non conveniens (“an unsuitable court”) and dismissed the shareholder action, entering judgment in favor of our client, BNC.

Kenneth H. Johnson v. BNCCORP, INC., Case No. 12-CH-44858 (Ill. Cir. Ct. (Ch. Div.)).