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DE PELETERIA v. GAFCO, INC

Appellate Division of the Supreme Court of New York, First Department
Oct 29, 1985
114 A.D.2d 329 (N.Y. App. Div. 1985)

Opinion

October 29, 1985

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


Plaintiff-appellant, a Spanish corporation with its principal place of business in Barcelona, Spain, sold fur and leather goods to Gafco, Inc., a domestic corporation with its principal place of business in New York, New York, for an agreed-upon price of $29,402. The merchandise was delivered to GAFCO which failed to render payments therefor.

On June 16, 1983, plaintiff-appellant commenced an action to recover $29,402 plus interest. Both parties agreed to a settlement in which the defendant-respondent was to make payments over a period of time. Defendant-respondent paid $10,000 by check, but stopped payment. Plaintiff-appellant brought another action for the balance of $19,402. The court at Special Term granted the defendant-respondent's motion pursuant to CPLR 3211 (a) (3) stating that the plaintiff-appellant lacked the legal capacity to sue in the State because it did not meet the requirements of Business Corporation Law § 1312 (a).

The statute is not designed to deny access to our courts by foreign corporations. (See, Von Arx, A.G. v. Breitenstein, 52 A.D.2d 1049.) Rather it is intended to require that those who do business in this State be authorized to do so. (Business Corporation Law § 1301.) At this stage, it is unclear whether the plaintiff is doing business here or whether it may be seeking authorization to do so. (Business Corporation Law § 1312; see, Tri-Terminal Corp. v CITC Indus., 78 A.D.2d 609.)

Concur — Murphy, P.J., Kupferman, Sullivan, Carro and Lynch, JJ.


Summaries of

DE PELETERIA v. GAFCO, INC

Appellate Division of the Supreme Court of New York, First Department
Oct 29, 1985
114 A.D.2d 329 (N.Y. App. Div. 1985)
Case details for

DE PELETERIA v. GAFCO, INC

Case Details

Full title:TINTERORIAS IBERICAS DE PELETERIA, S.A., Appellant, v. GAFCO, INC.…

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

Date published: Oct 29, 1985

Citations

114 A.D.2d 329 (N.Y. App. Div. 1985)

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