Blocked ratification of an unfavorable new management agreement for Salomon Brothers Asset Management by winning precedent setting opinion for Karpus Investment Management

Case Abstract
In succesful proxy contest and subsequent litigation to prevent transfer of management of bond fund at unfavorable terms, Lowey Dannenberg won a precedent setting ruling that an activist shareholder could defeat a quorum by not voting proxies that it had solicited.

Client
Karpus Investment Management.

Case Name
Salomon Brothers Mun. Partners Fund, Inc. v. Thornton, 410 F. Supp. 2d 330 (S.D.N.Y. 2006).

Result
Blocked ratification of an unfavorable new management agreement for Salomon Brothers Asset Management by winning precedent setting opinion.

Case Details
Lowey Dannenberg represented Karpus Investment Management in its successful proxy contest and subsequent litigation to prevent the transfer of management by Citigroup to Legg Mason of the Salomon Brothers Municipal Partners Fund. Lowey Dannenberg defeated the Fund's preliminary injunction action which sought to compel Karpus to vote shares it had solicited by proxy but withheld from voting in order to defeat a quorum and prevent approval of the transfer.