Opinion ID: 2460248
Heading Depth: 2
Heading Rank: 1

Heading: the city's claims against the shareholders must be dismissed

Text: ¶ 21 After the Shareholders answered the City's complaint, they sought dismissal of the City's claims against them by filing a Motion for Partial Summary Judgment for Failure to State a Claim. The district court denied the motion. It refused to dismiss the Shareholders because they were pursuing counterclaims against the City and because it concluded they had not met the summary judgment standard. The Shareholders contend that the district court improperly applied the summary judgment standard. They also argue that they are immune from suit under the corporate shield doctrine because the City's claims were brought against the Shareholders in their capacity as holders of Big Ditch stock. As discussed below, we agree with the Shareholders and hold that the district court erred in refusing to dismiss the City's claims against them.