Persson
Persson v. Smart Inventions, Inc.
Opinion
Opinion
Boland, J.
SUMMARY
Thomas Persson and Jon Nokes, both 50 percent shareholders in Smart Inventions, Inc., a corporation that marketed household consumer products, entered into a buyout agreement in which the corporation redeemed all of Persson’s shares. On the day the agreement was executed, the corporation began test marketing of a product called the Tap Light, which was an instant success and generated millions of dollars in revenue. Persson filed this lawsuit against Nokes and Smart Inventions, asserting claims of fraud and breach of fiduciary duty, among others, and claiming millions of dollars in damages. After extended litigation, Persson obtained a judgment for $306,000 and an award of attorney fees, and Nokes and Smart Inventions filed these appeals. Our conclusions are:
FACTUAL AND PROCEDURAL BACKGROUND
Thomas Persson and Jon Nokes were the founders and equal shareholders of a corporation which developed, manufactured and marketed household consumer products. Persson and Nokes began the business in 1991 as partners, doing business as Smart Products International. They were extremely successful with their first product, the Smart Mop, which Persson discovered in Sweden. In…