Opinion ID: 2602071
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: ¶1 System & Computer Technology, Inc. (S & C Tech.) merged with Campus Pipeline, Inc. (Campus Pipeline) when S & C Tech. purchased Campus Pipeline for an amount less than Campus Pipeline's preferred shareholders' liquidation preference. Campus Pipeline's common shareholders received nothing in the merger, and their shares were cancelled. William Borghetti, one of Campus Pipeline's common shareholders, and other common shareholders (collectively, Borghetti) sued S & C Tech. and others, alleging fraud, breach of fiduciary duty, and unjust enrichment. Borghetti also sued a law firm, Bendinger Crockett Peterson & Casey, P.C., as well as one of its individual attorneys, Jeffery Williams (Bendinger Crockett), in malpractice for failing to inform him of the 120-day deadline for filing a Delaware appraisal action. The district court granted summary judgment to all defendants, holding that Borghetti failed to raise a genuine issue of material fact as to whether he suffered damages. The court reasoned that because Borghetti could not show that Campus Pipeline was worth more than the liquidation preference, his shares had no value in a merger and therefore he suffered no damages. While we affirm as to the malpractice claim, we reverse as to the claims against S & C Tech. because the district court failed to consider rescissory damages, which in this case are the value of Borghetti's shares had the merger not taken place.