METROPOLITAN LIFE INSURANCE COMPANY V. RJR NABISCO, INC.
716 F.Supp. 1504 (1989)
NATURE OF THE CASE: 'Barbarians at the Gates.' This was the title of the movie about this financial goings on. Metropolitan (P), investors, filed an amended complaint against RJR (D), corporation and its chief executive officer alleging injuries from the corporation's leveraged buy-out of its shareholders. Under consideration was P's motion for summary judgment on the breach of the implied covenant of good faith and fair dealing and equity counts of their complaint, and Ds' cross-motions.
FACTS: Metropolitan Life (P) sued RJR (D) for its actions relating to the leveraged buyout of RJR by KKK for $109 per share for total of $21 billion. P alleges that D's actions have drastically impaired the value of the bonds issued to P. P alleged that D in fact had misappropriated the value of the bonds to help finance the LBO and to distribute an enormous windfall to the company's shareholders. P moved for summary judgment under Rule 56. P asked the court to find that the indenture contains an implied covenant of good faith and fair dealing and that the covenant was breached and D is in default and must redeem its bonds.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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