News

On October 18, 2018, in a unanimous decision, the Kentucky Court of Appeals published an Opinion in favor of Scott P. Zoppoth's client in a significant shareholder dispute, breach of fiduciary duty and fraud case. (Case No. 2017-CA-001358; Behram Tavadia and Tavadia Enterprises, Inc. v. Sheri A. Mitchell; Kentucky Court of Appeals).

The Appellate Court concluded that Zoppoth had proved at trial that his client, a minority shareholder, was defrauded by the majority shareholder of a mutually owned business. Further, the Appellate Court found that Zoppoth's client was entitled to "pierce the corporate veil" of the jointly owned company, and that the majority shareholder was found to be personally liable for the company's debts owed Zoppoth' s client, due to the fraudulent and morally culpable conduct of the majority shareholder who ran and controlled the company.

Interestingly, the Appellate Court in its Opinion, cited to a previously published Opinion where Zoppoth and his client also prevailed, regarding the award of punitive damages in another business fraud case Zoppoth successfully litigated in 2014. (Mo-Jack Distributor, LLC v. Tamarak Snacks, LLC; 476 S.W. 3d 900 (Ky. App. 2015).