Question
William and Max- ine Miller were shareholders of Claimsco International, Inc. They filed a suit against the other shareholders, Michael Har- ris and Kenneth Hoxie,
William and Max- ine Miller were shareholders of Claimsco International, Inc. They filed a suit against the other shareholders, Michael Har- ris and Kenneth Hoxie, and the accountant who worked for all of themJohn Verchota. Among other things, the Mill- ers alleged that Verchota had breached a duty that he owed them. They claimed that at Harris's instruction, Verchota had taken various actions that placed them at a disadvantage to the other shareholders. Verchota had allegedly adjusted Claims- co's books to maximize the Millers' financial liabilities, for instance, and had falsely reported distributions of income to them without actually transferring that income. Which duty are the Millers referring to? If the allegations can be proved, did Verchota breach this duty? Explain.
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