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Kulko v. Davail, Inc.

Kulko v. Davail, Inc., 2015 MT 340 (Dec. 8, 2015) (Cotter, J.) (7-0, rev’d)

Issue: (1) Whether the district court erred in concluding that corporate dissolution is an exclusive remedy under § 35-1-939, MCA; and (2) whether the district court erred in dismissing Kulko’s claims for lack of subject matter jurisdiction on the basis that the corporate dissolution eliminated any case or controversy.

Short Answer(1) Yes; and (2) yes.

Reversed and remanded

Facts: Alex and Sharon Horn incorporated Davail, Inc. in Montana in 1982 for estate planning purposes. Their children – David Kulko, Ilsa Kaye, and Michael Horn – are Davail’s sole shareholders, officers, and directors. Kulko owns 46% of the shares and is a director and vice-president; Kaye owns 46% and is a director and president; and Horn owns the remaining 8%.…