Milena Weintraub and Larry Griffith were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffith owned 51 percent of the stock and Weintraub 49 percent. Weintraub managed the casino, which Griffith typically visited once a week. At the end of 2012, an accounting audit showed that the cash on hand was less than the amount posted in the casino’s books. Later, more shortfalls were discovered. In October 2014, Griffith did a complete audit. Weintraub was unable to account for $ 200,500 in missing cash. Griffith then kept all of the casino’s most recent profits, including Weintraub’s $ 90,447.20 share, and, without telling Weintraub, sold the casino for $ 400,000 and kept all of the proceeds.
Weintraub filed a suit against Griffith, asserting a breach of fiduciary duty. Griffith countered with evidence of Weintraub’s misappropriation of corporate cash.
(a) The first group will discuss the duties that these par-ties owed to each other, and determine whether Weintraub or Griffith, or both, breached those duties.
(b) The second group will decide how this dispute should be resolved and who should pay what to whom to reconcile the finances.
(c) A third group will discuss Weintraub or Griffin violated any ethical duties to each other or to the corporation.