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Business Planning Keyed to Reed
Comedy Cottage, Inc. v. Berk
Citation:
495 N.E.2d 1006 (1986)Facts
Edward Hellenbrand began leasing premises in 1975 to operate a comedy club, later incorporating as Comedy Cottage, Inc. In 1978, Hellenbrand hired Jay Berk as general manager, later making him vice-president and giving him 10% of the shares. When the club’s lease expired in June 1984, Hellenbrand directed Berk to obtain a new lease. Berk negotiated a month-to-month lease listing himself as lessee but signed as vice-president of Comedy Cottage. In March 1985, the landlord terminated the month-to-month tenancy. Upon receiving the termination notice, Berk immediately resigned from Comedy Cottage, formed a new corporation called Comedy Company, Inc., and secured a lease for the same premises in his new company’s name. Hellenbrand and Comedy Cottage sued, alleging breach of fiduciary duty. The trial court found that Berk had breached his duty and enjoined him from interfering with plaintiffs’ possession of the premises.
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