Summary
holding that successor liability based on de facto merger is relevant to products liability tort law but is inapplicable in an action to collect on a promissory note, citing Symbax
Summary of this case from Cargo Partner AG v. Albatrans Inc.Opinion
November 9, 1998
Appeal from the Supreme Court, Nassau County (McCarty, J.).
Ordered that the order is modified, on the law, by (1) deleting the provision thereof denying the motion of the defendants Herman Miller, Inc., and Coro, Inc., and substituting therefor provisions granting the motion and dismissing the complaint insofar as it is asserted against those defendants, and (2) deleting the provision thereof denying that branch of the plaintiff's cross motion which was for summary judgment against the defendant Specmark of New York, Inc., and substituting therefor a provision granting that branch of the cross motion; as so modified, the order is affirmed insofar as appealed and crossappealed from; and it is further,
Ordered that Herman Miller, Inc., and Coro, Inc., are awarded one bill of costs payable by the plaintiff.
As the unsecured promissory note at issue was executed by Mark Solomon, the president of the defendant Specmark of New York, Inc. (hereinafter Specmark), in his representative capacity, summary judgment dismissing the cause of action which sought to hold Solomon personally liable on the note was properly granted ( see, Schmitz v. MacDonald, 250 A.D.2d 533; Republic Natl. Bank v. GSO, Inc., 177 A.D.2d 417). However, as there was no dispute that Specmark executed the promissory note and defaulted upon it, summary judgment should have been awarded to the plaintiff against Specmark upon the note.
There is no merit to the plaintiff's contention that the defendants Herman Miller, Inc., and Coro, Inc., are liable on the unpaid note as successors to Specmark after a de facto merger. Successor corporate liability after a de facto merger is relevant to products liability tort law but is inapplicable in an action to collect on a promissory note ( see, Symbax, Inc. v. Bingaman, 219 A.D.2d 552).
Mangano, P. J., Miller, Thompson and Luciano, JJ., concur.