Opinion
January 19, 1999.
Appeal from the Supreme Court, Suffolk County (D'Emilio, J.).
Ordered that the judgment is reversed, without costs or disbursements, and the matter is remitted to Supreme Court, Suffolk County, for further proceedings in accordance herewith.
Although the petitioner's common-law right, as a shareholder, to inspect the appellant's corporate books and records "is enforcible subject to the sound discretion of the Trial Judge" ( Matter of Ochs v. Washington Hgts. Fed. Sav. Loan Assn., 17 N.Y.2d 82, 88), such authority to inspect is qualified and can only be asserted where the shareholder is acting in good faith and has established that inspection is for a proper purpose ( see, Matter of Crane Co. v. Anaconda Co., 39 N.Y.2d 14, 18; Matter of Ochs v. Washington Hgts. Fed. Sav. Loan Assn., supra). "Where a corporation raises a substantial question of fact concerning a petitioner's good faith and motives in seeking examination of the corporation's books and records, a hearing must be held to determine the petitioner's good faith" ( Matter of De Paula v. Memory Gardens, 90 A.D.2d 886, 887; see, Matter of Ochs v. Washington Hgts. Fed. Sav. Loan Assn., supra; Matter of Wolberg v. Wolberg Elec. Supply Co., 72 A.D.2d 903). In the instant case, the appellant raised a substantial question of fact concerning the petitioner's good: faith and motive in seeking examination of its books and records. Therefore, the matter is remitted to the Supreme Court for a hearing on this issue ( see, Matter of Ochs v. Washington Hgts. Fed. Sav. Loan Assn., supra; Matter of De Paula v. Memory Gardens, supra; Matter of Wolberg v. Wolberg Elec. Supply Co., supra).
Miller, J.P., Thompson, McGinity and Luciano, JJ., concur.