Morgenstern v. Freudenberg

This motion presents in a complicated setting the troublesome question of indispensable parties. The guiding principle is easily stated: that in an action for rescission of an agreement, all parties to the agreement are indispensable and must be brought before the court (Galusha v. Galusha, 138 N. Y. 272; Gugel v. Hiscox, 216 N. Y. 145; McKnight v. Bank of N. Y. Trust Co., 254 N. Y. 417). But its application under these rather unusual circumstances is far from simple.

In 1956 plaintiff was a stockholder of a New York corporation with which he had a long-term employment agreement as one of its…