Baldwin v. Bader

Filing 920091019

Opinion

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var WPFootnote1 = 'Of the District of Massachusetts, sitting by designation.\
'

var WPFootnote2 = 'The six are John W. Bader, Steven P. Boulet, Michael L.\
Brousseau, Scott F. Hall, Roger H. Poulin and John A. Powell. They\
were the defendants in the law suit and the only directors of the\
company at the time the suit began; we refer to them as "the\
directors."\
'

var WPFootnote3 = 'Gilbert v. El Paso Co., 575 A.2d 1131, 1146 (Del. 1990); H-M\
Wexford LLC v. Encorp, Inc., 832 A.2d 129, 150-51 (Del. Ch. 2003);\
Shields v. Shields, 498 A.2d 161, 170 (Del. Ch. 1985); cf. Unocal\
Corp. v. Mesa Petroleum Co., 493 A.2d 946, 957-58 (Del. 1985).\
'

var WPFootnote4 = 'The defendants\' expert, John T. Gurley, used a substitution\
method to price the guaranties in which he assumed that they\
carried a similar risk to an equity investment and valued them\
accordingly. See Baldwin v. Bader, No. 07-46-P-H, 2008 U.S. Dist.\
LEXIS 56236, at *20 (D. Me. July 23, 2008). The lower court,\
however, found that the treatises cited by Gurley failed to support\
this (relatively novel) methodology; and, in any event, Gurley had\
never before valued a personal guaranty. Id. at 26-27. \
'

var WPFootnote5 = 'Indeed, there is no evidence suggesting that the directors\
revisited the pricing formula after its creation in March 2005; \
this is not surprising, as the formula provided that it would apply\
not only to the initial AVCOG loan but also to "any additional\
future financing." But this does not excuse the failure to revisit\
the issue in new circumstances. See Brehm v. Eisner, 746 A.2d 244,\
259 (Del. 2000).\
'

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