Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 4 of 4
Full-Text Articles in Law
The Discretion Of Judges And Corporate Executives: An Insider’S View Of The Disney Case, John J. Donohue
The Discretion Of Judges And Corporate Executives: An Insider’S View Of The Disney Case, John J. Donohue
John Donohue
The widely publicized Disney case is perhaps the most important corporate law litigation in many decades. The case illustrates the immense discretion in the hands of trial judges in Delaware Chancery Court to let their passive corporate law ideology determine the outcome even in cases of egregious management neglect. Unfortunately, as managers, not shareholders, are the ones who decide where to incorporate and Delaware—the state of choice—depends on incorporation revenues to feed its coffers, too often this discretion is exercised to protect management at shareholder expense.
Expert Witness Says Disney Had Cause To Fire President, John Donohue
Expert Witness Says Disney Had Cause To Fire President, John Donohue
John Donohue
The Walt Disney Company should have fired Michael S. Ovitz because of his "substantial and repeated dishonesty," a legal specialist testified yesterday in support of the shareholders who are suing Disney's directors over Mr. Ovitz's $140 million severance package.
Ovitz Performance In Disney Role Is Faulted At Trial, John Donohue
Ovitz Performance In Disney Role Is Faulted At Trial, John Donohue
John Donohue
Former Walt Disney Co. President Michael Ovitz's job performance and spending habits came under attack during testimony in a Delaware court case, as an expert witness said Disney's directors could have fired Mr. Ovitz for cause, rather than giving him the no‐fault termination he received. John J. Donohue, a Yale University law professor and witness for a group of Disney shareholders, testified that his review of California law, of Mr. Ovitz's employment contract and of depositions in the case showed that Disney's board had the right not to grant Mr. Ovitz a no‐ fault termination, which resulted in an estimated …
Disney Had Good Reason To Fire Ovitz, John Donohue
Disney Had Good Reason To Fire Ovitz, John Donohue
John Donohue
GEORGETOWN, Del., Oct 21 (Reuters) - Walt Disney Co. (DIS.N) should have fired Michael Ovitz rather than paying him $140 million in severance, a legal expert testified on Thursday in support of shareholders suing the Disney board. Shareholders are demanding that the severance and interest - a sum that could total about $200 million - be returned to the company, claiming that the board was asleep at the wheel when they approved the deal and that Ovitz failed miserably in his 14 months as president. In the second day of a trial that is being closely watched in corporate boardrooms, …