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KIMBALL v LINTHICUM Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,252, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELLAWARE, Plaintiff: KIMBALL, State: DE Delaware, UniqueCaseRef: DE>CC>00018252, Black Oak, Stock, Shares, Stockholders, Admittec, Ct1, Oak Hosting, Agreement, Certificate, Directors, Common Stock, Proposals, Account, Stock Restriction, Request, Plan, Purpose, Transaction, Stock Issuance, Officers, Employee, Valuation Addendum, Fiduciary Duties, Expenditure, Purports, Breaches, Representing, Outstanding, Linthicum, Incorporicion, Cash, Denying, Miller, Price, Defense, Gregory, Oak Computer Services, Paragraphs, Averment, Entirety, Jerry, Black Oak Common, Executes3, Assets , ContentID: 120240199

Case Documents
1 2000-09-22 ANSWER
[ see first page and extracted highlights below  ] ItemID: 100948
10 pages
PDF
2 2000-08-23 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 100949
13 pages
PDF
Total Documents: 2 documents , 23 pages
Price: $ 24.95


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1 . ANSWER

EXTRACTED KEY WORDS
ADMITTEC
STOCK
PLAINTIFF
DEFENDANTS
CERTIFICATE
REQUEST
COUNSEL
OAK HOSTING
CT1
SHARES
INCORPORICION
CASH
DENYING
MILLER
PRICE
AGREEMENT
DEFENSE
GREGORY
OAK COMPUTER SERVICES
ACCOUNT
PARAGRAPHS
AVERMENT
ENTIRETY
STOCKHOLDERS
JERRY
BLACK OAK COMMON
EXECUTES3
ASSETS
DIRECTORS
              IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                          IN AN> FOR NE:W CASTLE COUNT'Y

B?lJCE  D. KIMBALL,
                                       )
                      Plaintiff,
                                       i
               V .                     1    C.A. No. 18252-NC
CR.4IG S. LINTHICUM, ,JOHI\. F.        ;
MILLER, JR., GREGORY W.
MORGAN, MICHAEL C.  POMEF.OY,          ;
KEYNETH  C. PRICE,  JEElRY  I,.
WILCOXON, BLACK OAK  COME'UTER         ;
SERVICES, INC., a  Delaw;.re
corporation, and BLACK OAK             i
HOSTING SERVICES, LLC,  a              )
Maryland limited liability             )
company I                              )
                      Defendant.:;.    )

                                                                         .I  _I
                                       ANSWER
                                       --.__                            :  _
                                                                         :  >

        Defendants, Craig  S. Linthicum, John F. Miller, Jr., Gregory
W. Morgan, Michael C.  Pomeroy, Kenneth C. Price, Jerry L.

Wilcoxon, and Black Oak Computer Services, Inc., by and through
their undersigned  co:lnseIl, respond to the plaintiff's complaint
as follows:

                                 SUMMARY-,OF ACTION

        1.     Any such  expeliditures of corporate funds by Black Oak

were properly authorized and were deemed appropriate by Black
Oak.     No decision has  b':en made to issue additional shares of
Black Oak common stock, however, if such a decision is made,
Black Cak intends to do .so in accordance  witlr. the company's
certifj-cate of  incorporicion,   bli-laws, stock restriction

agreement, and applicable Delaware Law.                Upon information and

belief,. the plaintiff was provided with his original certificat's



SNIPPETS:
  • MILLER, JR., GREGORY W.
  • KEYNETH C. PRICE, JEElRY I,.
  • Wilcoxon, and Black Oak Computer Services, Inc., by and through their undersigned co:lnseIl,
  • Any such expeliditures of corporate funds by Black Oak
  • No decision has b':en made to issue additional shares of Black Oak common stock, however, if
  • the company's certifj-cate of incorporicion, bli-laws, stock restriction
  • the plaintiff was provided with his original certificat's
  • Oak's counsel, Gordon, I'ournaris 0;
  • Black O.ak will issue a replacement certificate to the plaintiff
  • upon written request from the plaintiff,
  • executes3 .Lost certif.icat.e affidavit in the form required by Black
  • Oak, Jo:ln C. Nason, org;lnized Black Oak Hosting by filing
  • 20% of CT1 stock for prrlviding technical services.
  • Admitted as t1 the amounts of cash, labor, equipment
  • HloweTWrer, it is admitted that the portion of the CT1 agreement which required a cash
  • there are no members or assets of Black Oak Hosting.
  • the defendants do not have
  • Oak board of directors that he would resign,
  • allegations are admittec:.
  • sufficient to form a bell-i-ef as to the truth of the averment.
  • Oak is without possession or control of the criginal stock certificate and cannlst provide it
  • Paragraphs 1 -through Z;5 are hereby incorporated as those set forth in tnei.?
  • Paragraphs 1:hrough 44 above are hereby incorporated as those set forth in tl;eir entirety.
  • the stock restriction agreement f2r Black Oak allows tte stockholders to
  • Denying the p: aintiff's request for each of the
  • FIR,S'T AFFIRJIATIVE DEFENSE;

  • 2 . COMPLAINT

    EXTRACTED KEY WORDS
    STOCK
    PLAINTIFF
    SHARES
    STOCKHOLDERS
    DEFENDANTS
    CT1
    OAK HOSTING
    COMMON STOCK
    AGREEMENT
    DIRECTORS
    PROPOSALS
    STOCK RESTRICTION
    PLAN
    PURPOSE
    TRANSACTION
    STOCK ISSUANCE
    OFFICERS
    EMPLOYEE
    VALUATION ADDENDUM
    FIDUCIARY DUTIES
    EXPENDITURE
    CERTIFICATE
    PURPORTS
    ACCOUNT
    BREACHES
    REPRESENTING
    OUTSTANDING
    LINTHICUM
    MEMBER
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DElLAWARE
    
                                   IK AND FOR NEW CASTLE COUNTY
    
    BRUCE  D. KIMBALL,
    
                    Plaintifl;
    
    
    
    CR4IG S. ILINTHICUM,  JOHN F.
    MILLER, JR., GREGORY  W. MORGAN,
    MICHAEL C. POMEROY, KENNETH C.                        i
    PRlCE,  JERRY L. WILCOXON, BLACK OAK                  )
    COMPUTER SERVICES, INC., a Delaware                   >
    corporation, and BLACK OAK HOSTING
    SERVICE3, LLC, a Maryland limited liability           1
    company,                                              )
    
                    Defendants.                           1
    
                                                 COMPLAINT
    
            Plaintiff, Bruce D. Kimball, by and through his undersigned attorneys, and for his
    
    cornpl.aint  in this matter, alleges as follows:
    
                                           SUM MARY OF  AC=
    
            1.      Plaintijyf  brings this action as a stockholder of Black Oak Computer Services, Inc.
    
    ("Black Oak" or the "Company"), a Delaware corporation, seeking redress for breaches of
    
    contractual and fiduciary duties as set forth below. Specifically, plaintiff seeks Jrecovery against
    
    the individual defendants - Black Oak's controlling stockholders, directors and officers - for
    
    their grossly negligent and unauthorized expenditures of corporate funds, and further seeks to
    
    prevent defendants from implementing their plan to issue additional shares of Black Oak
    
    common stock without ;adequate  consideration and without a proper corporate purpose. Plaintiff
    
    
    
    also seeks an order compelling defendants to provide him with the original certificate
    
    representing shares of I3lack  Oak common stock owned by him.
    
    
    SNIPPETS:
  • Plaintijyf brings this action as a stockholder of Black Oak Computer Services,
  • Specifically, plaintiff seeks Jrecovery against
  • prevent defendants from implementing their plan to issue additional shares of Black Oak
  • common stock without;adequate consideration and without a proper corporate purpose.
  • also seeks an order compelling defendants to provide him with the original certificate
  • Plaintiff ow ns 1 IO shares of Black Oak common stock, representing approximately 19.7% of the
  • Company's issued and outstanding common stock.
  • employee of Black Oak.
  • Linthlcum has been a member of Black Oak's board of directors since
  • Black Oak Hosting Services, LLC, is a limited liability
  • on the behalf of Black Oak or certain of its stockholders.
  • The (`77 Transaction
  • participate a CT1 vemure known as the "Life Fax Emergency Medical Response Card."
  • In or about January 2000, defendants Linthicum and Miller, as officers of the
  • Company., entered into an agreement with CTI, purportedly made effective as of March 10, 1999,
  • which agreement purports to require Black Oak `to contribute $250,000 in cash to CT1 and to
  • The expenditure of funds by Black Oak in connection with the CT1
  • Munagement's Stock Issuance
  • `Stock Restriction Agrl:emem").
  • a Valuation Addendum that provides a "Share Value" at which a stockholder's shares can be
  • plaintiff re,jected the Company's proposals to purchase his shares.
  • (Breach of Fiduciary Duties as to CT1 Transaction and Black `Oak Hosting)
  • Requiring the defendants, and each of them, to account for all expenditures by
  • breaches of duty complained of herein;
  •    |