Opinion
Argued April 10, 2000.
June 12, 2000.
In related proceedings to dissolve two corporations, the appeal is from an order of the Supreme Court, Richmond County (Lebowitz, J.), entered July 28, 1999, which granted the petitioners' motion pursuant to CPLR 6401 to appoint a receiver to operate the corporations during the pendency of the proceedings.
Miller Goldman, P.C., New York, N.Y. (Linda Goldman, Julie L. Miller, and Timothy Devane of counsel), for appellants.
Weinstein, Kaplan Cohen, P.C., Garden City, N.Y. (Alexander Mark Kaplan of counsel), for respondents.
Before: CORNELIUS J. O'BRIEN, J.P., FRED T. SANTUCCI, WILLIAM C. THOMPSON, SANDRA J. FEUERSTEIN, JJ.
DECISION ORDER
ORDERED that the order is reversed, on the law, with costs, and the motion is denied.
The provisional remedy of receivership may be invoked only in cases where the moving party has made a clear evidentiary showing of the necessity of conserving the property and protecting that party's interests (see, Secured Capital Corp. of N.Y. v. Dansker, 263 A.D.2d 503; Ronan v. Valley Stream Realty Co., 249 A.D.2d 288; Modern Collection Assoc. v. Capital Group, 140 A.D.2d 594). Here, the value of the real estate owned by the corporations provided sufficient security to the petitioners to enable them to protect their interests (see, B.D. F. Realty Corp. v. Lerner, 232 A.D.2d 346; Matter of Trepperv Goldbetter, 205 A.D.2d 363). If a future accounting reveals that the majority shareholders have improperly taken fees and interest for loans made by them to the corporations or have filed fraudulent tax records on behalf of the corporations, a setoff could be made against their remaining interest in the corporate assets.