Bush v. Brunswick Corp.
This case addresses whether shareholders of a target company, ICO, can sue an acquiring company, Brunswick, for damages resulting from the diminution of stock value due to an alleged breach of a Merger Agreement. The majority shareholders intervened in ICO's lawsuit against Brunswick, but the trial court struck their petition, ruling they were not intended third-party beneficiaries entitled to enforce the agreement, based on a clause stating the agreement was "not intended to confer upon any other person any rights or remedies hereunder." On appeal, the court examined the Merger Agreement and a related Shareholder Agreement, concluding that the shareholders were indeed intended third-party beneficiaries and the exclusionary clause did not apply to them, as they were integral participants in the merger. The court reversed the trial court's order and remanded the case for further proceedings.