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Allied Plywood Corp. v. G.S.W. Manufacturing, Ltd.

Appellate Division of the Supreme Court of New York, Second Department
Jan 8, 1990
157 A.D.2d 637 (N.Y. App. Div. 1990)

Opinion

January 8, 1990

Appeal from the Supreme Court, Westchester County (Delaney, J.).


Ordered that the judgment is affirmed, with costs.

On April 18, 1987, Allied Plywood Corporation (hereinafter Allied) obtained a judgment against G.S.W. Mfg., Ltd. (hereinafter GSW) for $42,090.52. Pursuant to CPLR 5227, Allied sought satisfaction of the judgment from Joseph Grasso, the president and sole shareholder of GSW, on the ground that Grasso owed GSW $228,147. Grasso opposed the proceeding on the theory that he was actually a net creditor of GSW. He claimed that there were mortgages on his property totaling approximately $1,413,000, on which GSW was the borrower, and which he assumed and paid off when he sold the property for $3,200,000. Allied urged that the mortgage debt really constituted a personal obligation and that its satisfaction was not a payment of the debt of GSW.

We agree with the finding of the Supreme Court that the record demonstrates that the loans benefited Grasso personally and thus their payment constituted payment of personal debt, not corporate debt. Accordingly, pursuant to CPLR 5227, judgment was properly granted to Allied. Mangano, J.P., Bracken, Sullivan and Balletta, JJ., concur.


Summaries of

Allied Plywood Corp. v. G.S.W. Manufacturing, Ltd.

Appellate Division of the Supreme Court of New York, Second Department
Jan 8, 1990
157 A.D.2d 637 (N.Y. App. Div. 1990)
Case details for

Allied Plywood Corp. v. G.S.W. Manufacturing, Ltd.

Case Details

Full title:ALLIED PLYWOOD CORPORATION, Respondent, v. G.S.W. MFG., LTD., Defendant…

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

Date published: Jan 8, 1990

Citations

157 A.D.2d 637 (N.Y. App. Div. 1990)