Munroe-Diamond v. Munroe

Illinois Appellate Court
Civil Court
Corporations
Citation
Case Number: 
2018 IL App (1st) 172966
Decision Date: 
Thursday, January 10, 2019
District: 
1st Dist.
Division/County: 
Cook Co., 3rd Div,
Holding: 
Affirmed in part and vacated in part; reversed and remanded.
Justice: 
ELLIS

(Court opinion corrected 1/22/19.) Parties to appeal are siblings and shareholders and directors of a moving and storage company. Sisters filed mandamus action for inspection of corporate books and records. Sisters, as corporate directors, have a presumptive right to inspect corporate books and records, unless Brothers can carry their burden of proving that their purpose for inspection is improper. Brothers made factually specific allegations that Sisters are using inspection demand as a cudgel to get more money for their shares, which is a valid defense of improper purpose. Thus, judgment on the pleadings for Sisters was error.(FITZGERALD SMITH and COBBS, concurring.)