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Business Organizations Keyed to Sjostrom
Holmes v. Lerner
Citation:
74 Cal. App. 4th 442 (1999)Facts
In 1995, Lerner and Holmes traveled to England to a horse show and to make arrangements to ship the horses that Lerner had purchased. On July 31, 1995, the two women discussed nail polish, and colors. They worked with the colors in a nail kit to try to recreate the purpose color Homes had made in England so they could have the color in a liquid form, rather than layering two colors. Lerner said to Holmes: “This seems like a good thing. Do you think we should start a company?” Holmes responded: “Yes, I think it’s a great idea.” They planned to hire people to work for them. Lerner called David Soward, the general partner of & Capital, and her business consultant. Holmes heard her say “Please check Urban Decay, for the name, to see if it’s available.” The call to secure the trademark for Urban Decay confirmed in Holmes’ mind that they were forming a business based on the concepts that had originated in England. Lerner, Holmes, and Soward participated in a meeting to discuss financing. Holmes asked Lerner to define her role at Urban Decay and Lerner responded that her role is anything she wants it to be. In March 1996, Holmes received a document from Soward offering her a 1 percent ownership interest in Urban Decay, explaining that Urban Decay had been formed as a limited liability company.
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Topic Resources
Topic Outline
BreachTopic Refresher Course
Breach: Major and MinorTopic Charts & Notes
Remedies