Tabs Motors of Valley Stream Corp's shareholder agreement included a buyout provision with a price based on a fixed per-share value. When the relationship of the owners deteriorated, the corporation exercised its buyout option at the fixed price. Lawsuits were filed, and the court ruled that the shareholder agreement was enforceable and the fixed price was what should be paid.
Tabs Motors is a family-owned, automotive repair business. A shareholder agreement was signed and enforced in 2013. One of the four equal shareholders is the Estate of Connie Collins.
On October 29, 2019, the Estate and Michael Louros (another 25% shareholder) filed a petition for dissolution of the corporation. Filing the dissolution triggered a buy-sell provision in the shareholder agreement at a fixed per-share price.
The shareholder agreement set the price at $5,250 per share, which was double the value set forth in a comprehensive appraisal prepared only two years...
