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Business Organizations Keyed to Macey
Sullivan v. Hammer
Citation:
1990 WL 114223 (1990)Facts
On April 25, 1989, defendant Occidental Petroleum Corporation mailed to its stockholders a proxy statement for the company’s 1989 annual meeting, which reported that a Special Committee of Occidental had approved a proposal to provide financial report for the Armand Hammer Museum of Art and Cultural Center. The proxy statement referred to the financial support that Occidental would provide to the Museum and set forth a description of Hammer’s employment agreements. Plaintiffs filed this action asserting that Occidental’s expenditures and commitments with respect to the Museum pursuant to Hammer’s employment contract constitute a waste of corporate assets and that Hammer had breached his duty of loyalty by causing Occidental to make these expenditures for his personal benefit. On June 1989, the parties entered into a written agreement setting forth the general terms of a proposed settlement.
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