Opinion ID: 2320147
Heading Depth: 1
Heading Rank: 4

Heading: Alternative Summary Judgment Argument

Text: Appellees request this court to affirm the trial courts decision on the basis of their alternative request for summary judgment, upon which the trial court did not rule. This court has held that it may affirm a decision for reasons other than those given by the trial court. Cevenini v. Archbishop of Washington, 707 A.2d 768, 775 (D.C.1998) (citation and internal quotation marks omitted). In this connection, appellees argue that the record shows that Dashtara disclosed his individual interest to appellant and that appellant signed off on the disclosures and minutes pertaining to the transactions that he claims were improper. Thus, they contend that the minority shareholders interest was protected in the transactions. Summary judgment is appropriate only if no genuine issue of material fact exists and the movant is entitled to judgment as a matter of law. GLM Pship. v. Hartford Cas. Ins. Co., 753 A.2d 995, 997-98 (D.C.2000) (citing Colbert v. Georgetown Univ., 641 A.2d 469, 472 (D.C.1994)) (en banc). `[A] motion for summary judgment is properly granted if (1) taking all reasonable inferences in the light most favorable to the nonmoving party, (2) a reasonable juror, acting reasonably, could not find for the non-moving party, (3) under the appropriate burden of proof. Kendrick v. Fox Television, 659 A.2d 814, 818 (D.C.1995) (quoting Nader v. de Toledano, 408 A.2d 31, 42 (D.C.1979)). On the present record, we cannot conclude that there are no genuine issues of material fact or that appellees are entitled to summary judgment as a matter of law. First, while appellees contend that appellant signed disclosures and minutes related to the transactions, appellants claims are not disposed of by these facts, even assuming they are true. Appellant alleges that Dashtara concealed how and to what extent he was profiting from the transactions. The majority stockholder owes a fiduciary duty to the minority shareholders, just as the directors owe one to the corporation. Mayflower Hotel Stockholders, P.C. v. Mayflower Hotel Corp., 84 U.S.App. D.C. 275, 173 F.2d 416, 423 (D.C.Cir.1949). When disclosure by a majority shareholder to the minority is required, full disclosure must be made. See id. (setting forth the principle that the majority stockholders, upon whom the minority is dependent for knowledge, must make full disclosure when selling stock control). Appellants claim appears to be that there was less than full disclosure of the details of the transactions, particularly the extent to which Dashtara was benefitting to the detriment of the corporation. There are allegations that Dashtara concealed material aspects of the transactions. Further, appellees alternative motion does not resolve the issues raised by appellants claims that Dashtara refused to act in the interest of the corporation and its minority shareholder by removing the premium arrangement from which he was benefitting at the expense of the corporation. There are other claims that we cannot resolve on summary judgment on the present record, including that Dashtara: diverted profits from the corporation to himself and his family; inflated his personal expenses while obtaining reimbursement from the corporation; and, removed appellant as an officer and employee, resulting in a threat to the fiscal integrity of the corporation. Contrary to appellees assertion, the second amended complaint does allege that the corporation was harmed financially by the alleged breaches. Under the circumstances, appellees have failed to meet their burden of showing that there are no genuine issues of material fact in dispute or that they are entitled to summary judgment as a matter of law at this stage of the proceedings. For the foregoing reasons, the order dismissing the second amended complaint is reversed, and the case is remanded to the trial court for further proceedings consistent with this opinion. So ordered.