Haberman v. Tobin

I dissent.

Judge Sweet’s first order on the subject of security, pursuant to a motion by defendants, required Haberman to post $100,000 in security under both N.Y.Bus.Corp.Law § 627 and Local Civil Rule 2. Haberman responded by purchasing $50,000 in Alleghany stock, which he contended relieved him from the obligation to post security as to the state claims under the provisions of § 627. Judge Sweet disagreed that Haber-man could avoid the New York security provision by a purchase of stock after the action had commenced and dismissed plaintiff’s state claims. Even though the first order…