Wollman v. Littman

35 A.D.2d 935, 316 N.Y.S.2d 526 (N.Y.App.Div.1st. Dept. 1970)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

The stock of the corporation is held, fifty percent each, by two distinct groups, the Neirenberg sisters (P) and the Littmans (D). Each group has equal representation on the board of directors. The corporation's business is the selling of artificial fur fabrics to garment manufacturers. D allegedly had the idea for the business and developed a market for the fabrics among its manufacturing customers. Ps are the daughters of the main stockholders who procures the fabrics and sells them to the corporation. Ds in a separate action, in which they are plaintiffs, charged Ps and their father's corporations with seeking to lure away the corporation's customers for themselves and with doing various acts to affect the corporation's business adversely. P countered with this suit, claiming that the bringing of the other action indicates that the corporate management is at such odds among themselves that effective management is impossible. The trial court ordered dissolution and appointed a receiver. The appellate court affirmed the appointment of a receiver but ruled that dissolution should not occur without a full trial of the issues.