Applied Medical Resources wins appeal in breach of contract and conversion claims litigation
Clients Applied Medical Resources Corporation
Jones Day client Applied Medical Resources Corporation persuaded the California Court of Appeal to reverse summary judgment of breach of contract and conversion claims Applied Medical filed against a former member of its Board of Directors. Although the former director received stock options from Applied Medical under agreements that gave the company a right to repurchase the shares at fair market value, the director refused to return the shares per that agreement and challenged the company's independent valuation of those shares. The court held that a reasonable jury could find that the director breached his stock option agreements and interfered with Applied Medical's right to control the shares, thereby harming the company.
Applied Medical Corp. v. Thomas, No. CIV519758 (Super. Ct. San Mateo Cty., Cal.); No. A145867 (Cal. App.)