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Miller v. Kastner

Appellate Division of the Supreme Court of New York, Fourth Department
Mar 6, 1984
100 A.D.2d 728 (N.Y. App. Div. 1984)

Opinion

March 6, 1984

Appeal from the Supreme Court, Monroe County, Finnerty, J.

Present — Hancock, Jr., J.P., Denman, Boomer, Green and Moule, JJ.


Order unanimously affirmed, with costs. Memorandum: Special Term correctly denied defendants' motion to dismiss plaintiff's complaint in this shareholder's derivative action. The allegations in the complaint must be liberally construed ( MacKay v Pierce, 86 A.D.2d 655). We conclude that plaintiff complied with subdivision (c) of section 626 Bus. Corp. of the Business Corporation Law by alleging with sufficient particularity that it would have been futile to attempt to secure the initiation of this action by the board of directors. The complaint shows that defendant, as majority stockholder, had power under the by-laws to remove plaintiff and his wife, the other directors, without cause. Moreover, defendant was managing director and facts are pleaded warranting the conclusion "that the directors are such only in form, and that the wrongdoer * * * against whom relief is sought actually perform[s] such directorate duties" ( Marco v Sachs, 269 App. Div. 845, aff'd. 295 N.Y. 642; see Barr v Wackman, 36 N.Y.2d 371, 379; Joseph v Amrep Corp., 59 A.D.2d 841).


Summaries of

Miller v. Kastner

Appellate Division of the Supreme Court of New York, Fourth Department
Mar 6, 1984
100 A.D.2d 728 (N.Y. App. Div. 1984)
Case details for

Miller v. Kastner

Case Details

Full title:HENRY MILLER, as Stockholder in Central Tobacco Company, Inc., on Behalf…

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

Date published: Mar 6, 1984

Citations

100 A.D.2d 728 (N.Y. App. Div. 1984)

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