In a session on Wednesday, the Michigan Supreme Court appeared doubtful regarding Kathryn Kircher’s claim that Boyne USA Inc. breached an agreement related to her share redemption. The case centers on whether Boyne’s decision to take on debt altered the formula for her share redemption price, which she argues was a breach of a 2014 settlement agreement.
Multiple justices probed Kircher’s attorney, Joseph Ahern, asking for specific language in the agreement that would have prevented the company from taking on debt or that directly tied the debt to her redemption price. Ahern struggled to provide the necessary wording from the contract, which led to skepticism from the justices.
The dispute began after Kircher, who reached a settlement with Boyne in 2014, claimed that her right to redeem shares was compromised when Boyne made significant purchases, including $300 million in real estate, which altered the company’s business model. Kircher’s redemption price formula, which was based on the company’s financial performance, went from $773 per share to a negative value of $2,164.94 by 2019.
