Babyage.com v. Weiss

VERDICT

Trial
10/13/09 – 10/14/09

Summary

Bench trial involving claims and counterclaims revolving around a dispute between the company's founders, including a claim against the chairman of Babyage.com's board by other members alleging he purposely sabotaged attempts to secure new funding for the company so he could sell it, thus enriching himself in the process.

The Court entered judgment in favor of the defendant and against babyage on the issue of whether the termination of Weiss was valid. The by-laws required that only the board could remove an officer, and Weiss was an officer when the CEO purported to terminate him unilaterally.

The Court entered judgment in favor of the plaintiff and against the defendant babyage on the plaintiff's claim for advancement of attorney fees because the company's complaint and the counterclaims all resulted from Weiss's position as an officer or director of the company.

The Court requested additional briefing on the question of whether the shareholder agreement and certificate of agreement were in conflict, before ruling on the issue of Weiss's removal from the board of directors.

Outcome

The court denied BabyAge’s motion to reverse/overturn Mr. Brown’s determination.

Sessions

Recording Disclaimer: This proceeding was recorded in full except noted sections that were not recorded.

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