Pearson v. Rosenberg

Plaintiff, in a derivative stockholders’ action, appeals from so much of an order as granted defendants’ cross motion for a protective order pursuant to CPLR 3103 vacating plaintiff’s notice to conduct an examination before trial pursuant to CPLR 3101 and 3102. The issue is whether there appear sufficient special circumstances to warrant the allowance of such an examination.

The gravamen of the action is the misuse of one corporation in which there are public stockholders for the benefit of another close corporation, the administrations of both corporations being controlled by the same group.…