Glenn v. Hoteltron Sys

In Glenn v. Hoteltron Sys., 74 NY2d 386 (1989) the Court of Appeals redirected damages awarded to an individual shareholder of a close corporation for a diverted corporate opportunity claim back to the corporation itself even though the wrongdoer would then share in the restitution. Id. Glenn, however, is distinguishable. The Court stated that its decision to require damages to revert to the corporation was based on the rights of creditors, who while not parties, might have had claims superior to the innocent shareholder. Id. The Court noted, however, that other circumstances may justify awarding relief directly to the innocent shareholder(s). (Glenn, 74 NY2d at 392.)