Wells v. Reed

Plaintiffs appealed from the trial court dismissal of their amended and consolidated shareholder-derivative complaint. At issue in the appeal was the trial court’s finding that the amended complaint did not allege with particularity the failure of the defendant’s board to respond to plaintiff’s demands. The appellate court reversed and reinstated the amended complaint, finding that a reasonable doubt was created as to the board’s ability to exercise any judgment where it failed to respond to the demand for more than four years and that the complaint sufficiently alleged a cause of action to survive dismissal pursuant to section 2-615. (HYMAN and C.A. WALKER, concurring)