Ottmann v. Blaugas Co.
Appellate Division of the Supreme Court of the State of New York
Appeal by the defendants, Blaugas Company of Cuba and others, from a judgment of the Supreme Court in favor of the plaintiff, entered in the office of the clerk of the county of New York on the 19th day of May, 1915, upon the decision of the court after a trial at the New York Special Term.
1Opinion of the Court
Scott, J.:
In my opinion the evidence failed to establish liability on the part of these directors who were not members of the executive committee and who are not shown to have had any knowledge of or any hand in preparing the so-called booklet containing the false statements which constitute the basis of this action. They were not members of a syndicate of promoters seeking to sell stock for their individual benefit as were the defendants in Downey v. Finucane (205 N. Y. 251) and Lehman-Charley v. Bartlett (202 id. 524), but simply directors of a corporation which employed an agent to sell…
2Cases cited3 opinions
- Arthur v. . GriswoldNew York Court of Appeals · 1874
- Downey v. . FinucaneNew York Court of Appeals · 1912
- Rives v. BartlettAppellate Division of the Supreme Court of the State of New York · 1913
3Cited by1 opinion
- Cushman v. AmendAppellate Division of the Supreme Court of the State of New York · 1917