AKSM prevails in appeal challenging directed verdict in fraud, breach of fiduciary duty, and breach of contract action
Clients American Kidney Stone Management, Ltd.
The Ohio court of appeals affirmed the directed verdict Jones Day obtained on behalf of its clients, American Kidney Stone Management, Ltd. (AKSM), a physician-owned limited liability company, and current and former members of its Board of Managers. Last year, on the seventh day of trial, the trial court granted the motion at the close of plaintiffs’ case on all claims, including fraud, breach of fiduciary duty, and breach of contract. The plaintiffs appealed that decision, assigning error to several procedural rulings and the substantive propriety of the directed verdict. The Tenth District overruled all assignments of error and affirmed. The claims, brought by 33 former unit holders of the company, arose out of the adoption of an amendment to the LLC agreement setting criteria for LLC membership that plaintiffs could not meet, thus requiring redemption of their units using a pricing mechanism set in the amendment.
Yasmeen E. Ahmed, et al. v. Henry A. Wise, II, M.D., et al., Case No. 12 APE-07-613 (10th Dist. May 30, 2013); Yasmeen E. Ahmed, et al. v. Henry A. Wise, II, M.D., et al., Case No. 09-CVG-06-8337 (Franklin County, Ohio Common Pleas)