Date decided 1968 | Location United States of America | |
 | ||
Citation(s) 237 N.E. 2d 776 (Ill. App. 1968) Similar Dodge v Ford Motor Co, AP Smith Manufacturing Co v Bar, Walkovszky v Carlton, Meinhard v Salmon, In re Caremark Internatio | ||
Shlensky v Wrigley, 237 NE 2d 776 (Ill. App. 1968) is a leading US corporate law case, concerning the discretion of the board to determine how to balance the interests of stakeholders. It represents the shift in most states away from the idea that corporations should only pursue shareholder value, seen in the older Michigan decision of Dodge v Ford Motor.
Contents
Facts
The Chicago Cubs’ president refused to install field lights for night games at Wrigley Field. "Plaintiff allege[d] that Wrigley ha[d] refused to install lights, not because of interest in the welfare of the corporation but because of his personal opinions 'that baseball is a 'daytime sport' and that installation of lights and night baseball games will have a deteriorating effect upon the surrounding neighborhood'." This meant that night games could not go ahead, and so, in the view of Schlensky, would result in lower profits for shareholders. A challenge was brought by shareholder Schlensky against the directors' decision.
Judgment
The Court affirmed the director’s decision. The president was not liable for failing to maximize returns to shareholders. It was,