Haberman v. New York Ambassador, Inc.

The issue on this appeal concerns the sufficiency of the complaint in a minority stockholder’s suit against the individual defendants as directors of the defendant New York Ambassador, Inc. The gist of the complaint is that the directors violated their duties in making a certain management contract for the operation of the hotel owned by the corporation.

The board of directors of the corporate defendant consists of the plaintiff Zauderer and the four individuals named as defendants in this action. The defendant Atkinson owns 63% of the corporate stock and is the manager retained under the…