Thursday, August 29, 2013
Kentucky Supreme Court Denies Review of Decision on Standing to Pursue Derivative Action
Kentucky Supreme Court Denies Review of Decision
on Standing to Pursue Derivative Action
On July 11, 2012, I reported on the decision of the Kentucky Court of Appeals in Watkins v. Stockyards Bank Trust Co., 2012 WL 2470692 (Ky. App. June 29, 2012), an opinion designated as “To Be Published.” Therein, the Court of Appeals determined that the beneficiary of a trust that was itself a shareholder of a corporation did not have standing to bring this particular derivative action. Specifically, the Court determined that the plaintiff did not “fairly and adequately represent the interest” of the similarly situated shareholders for a variety of reasons including the universal opposition of the shareholders to the suit and the fact that the plaintiff had requested settlement of the claims in return for a payment to himself as contrasted with recovery by the corporation. Here is a LINK to that review.
By Order dated August 21, 2013, the Kentucky Supreme Court denied discretionary review. Unfortunately, however, the Supreme Court, without other explanation, ordered that the decision of the Court of Appeals not be published.