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HARRIS v. HARRIS

C.A. No. 2019-0736-JTL.

289 A.3d 277 (2023)

Timothy J. HARRIS, on behalf of himself and derivatively on behalf of Harris FRC Corporation and the Mary Ellen Harris 2011 Grantor Retained Annuity Trust, Petitioner/Plaintiff, and Kristen Harris and Megan Loewenberg, on behalf of themselves and derivatively on behalf of Harris FRC Corporation and the Mary Ellen Harris 2011 Grantor Retained Annuity Trust, Plaintiffs, v. Mary Ellen HARRIS, Judith Lolli, Charles Grinnell, Royce Management, Inc., Michael Schwager and Paul Petigrow, Defendants, and Harris FRC Corporation, a New Jersey Corporation, Respondent, and Harris FRC Corporation, a New Jersey Corporation and the Mary Ellen Harris 2011 Grantor Retained Annuity Trust, Nominal Defendants.

Court of Chancery of Delaware.

Date Decided: January 12, 2023.

Attorney(s) appearing for the Case

Joel Friedlander , Christopher M. Foulds , David Hahn , FRIEDLANDER & GORRIS, P.A., Wilmington, Delaware; Counsel for Petitioner/Plaintiff Timothy J. Harris.

S. Michael Sirkin , R. Garrett Rice , ROSS ARONSTAM & MORITZ LLP, Wilmington Delaware; Gregory Lomax , LAULETTA BIRNBAUM, Sewell, New Jersey; Jill Guldin , FISHER BROYLES, LLP, Princeton, New Jersey; Counsel for Kristen C. Harris and Megan Harris Loewenberg.

David A. Jenkins , Julie M. O'Dell , SMITH, KATZENSTEIN & JENKINS LLP; Wilmington, Delaware; Counsel for Mary Ellen Harris.

Steven L. Caponi , Matthew B. Goeller , Megan E. O'Connor , K&L GATES LLP, Wilmington, Delaware; Counsel for Mary Ellen Harris, Paul Petigrow, and Michael Schwager.

Kurt M. Heyman , Patricia L. Enerio , Gillian L. Andrews , HEYMAN ENERIO GATTUSO & HIRZEL LLP, Wilmington, Delaware; Counsel for Royce Management, Inc., Judith Lolli, and Charles Grinnell.

John L. Reed , Ronald N. Brown, III , Peter H. Kyle , Kelly L. Freund , DLA PIPER LLP (US), Wilmington, Delaware; Neal J. Levitsky , E. Chaney Hall , FOX ROTHSCHILD LLP, Wilmington, Delaware; Emily A. Kaller , GREENBAUM, ROWE, SMITH & DAVIS LLP, Woodbridge, New Jersey; Counsel for Harris FRC Corporation.

William M. Kelleher , Phillip A. Giordano , Madeline Silverman , GORDON, FOURNARIS & MAMMARELLA, P.A., Wilmington, Delaware; Counsel for The Mary Ellen Harris 2011 Grantor Retained Annuity Trust.

OPINION

Harris FRC Corporation ("Harris FRC" or the "Company") is a family-owned corporation. The plaintiffs are three of the five children of Dr. Robert M. Harris, Sr., and Mary Ellen Harris.1 The plaintiffs allege that Mary Ellen and four of her close friends and advisors schemed to seize control...

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