Main Content
Marchand II v. Barnhill
3/18/2024 pdw
In this case, Texas's greatest ice cream manufacturer ignored food safety issues, which eventually caused a listeria outbreak that led to the deaths of three customers. Killing customers is generally frowned upon by shareholders because it may reduce future earnings. So shareholders brought a suit against the directors claiming that the board failed to exercise its duty of oversight.
Also, note that this case was decided by the Delaware Supreme Court, and the heading refering to the Court of Errors and Appeals is an error in the casebook software.
This book, and all H2O books, are Creative Commons licensed for sharing and re-use with the exception of certain excerpts. Any excerpts from the Restatements of the Law, Principles of the Law, and the Model Penal Code are copyright by The American Law Institute. Excerpts are reproduced with permission, not as part of a Creative Commons license.