William P. Sadler, Barbara K. Sadler, and American Telephone and Telegraph Company v. Ncr Corporation Case Brief
Complete case briefs with LSD+
Every LSD.Law brief pairs a full IRAC analysis with opinion summaries at three levels of depth, written by a team of Harvard Law and MIT graduates - a quick synopsis when you are pressed for time, the complete reasoning when you need to go deep.
Adaptive Case Views
Toggle between Flash, Standard, and Expanded. Get what you need, when you need it.
Exam-Ready IRAC Format
We deliver the precise structure professors look for in exam answers.
Complex Cases, Clarified
We break down dense legal reasoning into something digestible, helping you grasp core concepts.
Case Brief Summary & Legal Analysis
tl;dr: A New York court ordered a Maryland corporation to provide its shareholder and non-objecting beneficial owner (NOBO) lists to a qualifying New York resident shareholder, even though the shareholder was acting for another company and the lists were sought for a hostile takeover.
Legal Significance: Establishes that a state’s shareholder inspection statute can compel a foreign corporation to compile and produce a NOBO list, and that applying such a statute does not violate the Commerce Clause, creating an important exception to the internal affairs doctrine.
Case Facts & Court Holding
Key Facts & Case Background
NCR Corporation, a Maryland corporation doing substantial business in New York, became the target of a hostile tender offer by AT&T, a New York corporation. To facilitate a proxy contest to replace NCR’s board, AT&T needed access to NCR’s shareholder list. AT&T itself did not meet the six-month holding requirement under New York Business Corporation Law § 1315. Therefore, AT&T entered into an agreement with the Sadlers, New York residents who were qualifying NCR shareholders. The Sadlers demanded that NCR produce its record shareholder list and also compile and produce a list of non-objecting beneficial owners (a “NOBO list”), which was not then in NCR’s possession. NCR refused, arguing that the Sadlers were merely improper agents for the non-qualifying AT&T, that New York law did not require the compilation of a non-existent NOBO list, and that applying New York’s statute to a Maryland corporation violated the Commerce Clause’s internal affairs doctrine. Maryland law had stricter requirements for shareholder list inspection. Critically, NCR’s charter required an 80% supermajority vote of all outstanding shares to replace directors at a special meeting.
Court Holding & Legal Precedent
Issue: Does New York Business Corporation Law § 1315 require a foreign corporation doing business in New York to compile and produce its shareholder and NOBO lists for a qualifying resident shareholder, even when that shareholder is acting on behalf of a non-qualifying entity and the law of the state of incorporation would not compel such disclosure?
Yes. The court affirmed the order compelling NCR to produce the lists. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet,
IRAC Legal Analysis
About IRAC analysis
IRAC (Issue, Rule, Analysis, Conclusion) is the structure professors expect in exam answers. Each LSD.Law brief states the issue, the governing rule with citations, the court's application of that rule, and the conclusion - the same reasoning pattern you will use on exams and in practice.
Legal Issue
Does New York Business Corporation Law § 1315 require a foreign corporation doing business in New York to compile and produce its shareholder and NOBO lists for a qualifying resident shareholder, even when that shareholder is acting on behalf of a non-qualifying entity and the law of the state of incorporation would not compel such disclosure?
Conclusion
This case solidifies the principle that shareholder inspection rights are a significant Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum
Legal Rule
Under New York Business Corporation Law § 1315, a qualifying resident shareholder Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proid
Legal Analysis
The court's analysis proceeded in two parts. First, it addressed the statutory Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore
Flash-to-Full Case Opinions
Flash Summary
- A state (New York) can require an out-of-state corporation doing business