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Abrams v. Donati

Appellate Division of the Supreme Court of New York, First Department
Feb 28, 1985
108 A.D.2d 704 (N.Y. App. Div. 1985)

Opinion

February 28, 1985

Appeal from the Supreme Court, New York County (Seymour Schwartz, J.).


The first cause of action alleges the existence of a conspiracy among the shareholders of defendant Donrico, Inc., and a company called The Plate Shop, Inc., to depreciate the value of stock owned by plaintiff Harry Abrams in Donrico and that as a result of defendants' wrongful acts, plaintiff's stock interest was thereby diminished. However, the law is clear that an "individual shareholder has no right to bring an action in his own name and in his own behalf for a wrong committed against the corporation." ( General Motors Acceptance Corp. v Kalkstein, 101 A.D.2d 102, 106.) Since the assertion that defendants conspired to and did, in fact, depress the value of Donrico shares sets forth a wrong against the corporation, this claim belongs to the corporation and should be brought as a derivative suit. ( Strain v Seven Hills Assoc., 75 A.D.2d 360; Carpenter v Sisti, 45 A.D.2d 529.) Consequently, the first cause of action against defendant Enrico Donati, one of the shareholders of Donrico, should have been dismissed. In view of the fact that the first cause of action is the only part of the complaint which seeks recovery against Donati personally, he is entitled to an immediate trial for the assessment of damages on the counterclaim for which he has already been granted partial summary judgment.

Concur — Sandler, J.P., Bloom, Fein and Milonas, JJ.


Summaries of

Abrams v. Donati

Appellate Division of the Supreme Court of New York, First Department
Feb 28, 1985
108 A.D.2d 704 (N.Y. App. Div. 1985)
Case details for

Abrams v. Donati

Case Details

Full title:HARRY ABRAMS, Respondent, v. ENRICO DONATI, Appellant, et al., Defendants

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

Date published: Feb 28, 1985

Citations

108 A.D.2d 704 (N.Y. App. Div. 1985)

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