Bedi v. Dhaliwal
Mohinder Bedi and Harvinder Dhaliwal were minority and majority shareholders, respectively, of a closely held corporation which owned and operated a gas station. Dhaliwal managed the station and maintained all of its books. Bedi sued Dhaliwal and other corporations controlled by Dhaliwal (Defendant Corporations) for fraud and breach of fiduciary duty, among other causes of action, when he discovered that the corporation’s books were in disarray and that substantial funds were missing from the company. A jury awarded Bedi compensatory and punitive damages. The trial court denied Bedi’s alter ego liability claims against the Defendant Corporations.
Dhaliwal challenges the verdict, arguing that Bedi’s claims were properly derivative corporate causes of action rather than individual claims, that the court erroneously instructed the jury that it could award Bedi additional distributions and missing corporate funds based on a 30 percent pro rata share, and that the trial court erred in not instructing the jury on Dhaliwal’s statute of limitations defense. The Defendant Corporations challenge the court’s denial of their cost bill.[1] We affirm.
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