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Friedman v. E.R. Squibb Sons, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Dec 22, 1986
125 A.D.2d 539 (N.Y. App. Div. 1986)

Opinion

December 22, 1986

Appeal from the Supreme Court, Suffolk County (Balletta, J.).


Ordered that the order is affirmed, with costs.

The plaintiff, the chief officer, shareholder, and founder of United States Priority Transport Corporation, brought this action on his own behalf to recover for individual damages due to an alleged conspiracy by the defendants to cause the corporation to cease operations. The complaint was properly dismissed on the ground that shareholders, officers and employees of a corporation do not have standing under General Business Law § 340 (the "Donnelly Act") to recover for wrongs committed against the corporation (see, Lerner Stores Corp. v. Parklane Hosiery Co., 86 Misc.2d 215, affd 54 A.D.2d 1072; Teltronics Servs. v Anaconda-Ericsson, Inc., 587 F. Supp. 724, affd 762 F.2d 185). Here, the business allegedly interfered with was conducted by the corporation. The plaintiff failed to allege facts sufficient to show that he suffered direct personal damage as a result of the alleged conspiracy, as opposed to damages derived solely from injury to the corporate entity (see, Greenfield v. Denner, 6 N.Y.2d 867). Thompson, J.P., Rubin, Lawrence and Kunzeman, JJ., concur.


Summaries of

Friedman v. E.R. Squibb Sons, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Dec 22, 1986
125 A.D.2d 539 (N.Y. App. Div. 1986)
Case details for

Friedman v. E.R. Squibb Sons, Inc.

Case Details

Full title:MARTIN D. FRIEDMAN, Appellant, v. E.R. SQUIBB SONS, INC., et al.…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Dec 22, 1986

Citations

125 A.D.2d 539 (N.Y. App. Div. 1986)

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