Colacino v. Poyzer

— Judgment unanimously reversed on the law without costs and motion denied. Memorandum: Supreme Court should not have granted summary judgment against defendants. Defendants were the only directors, officers, and stockholders of ARP Development Corporation (ARP), which was formed to purchase and develop real property. They had lent money to the corporation. In July 1983, three parcels of land owned by the corporation were mortgaged and defen*965dants paid about $85,000 to themselves from the proceeds of that mortgage in order to repay personal loans they had made to the corporation.

In November…