Rye Psychiatric Hospital Center, Inc. v. Doniger

This action, which seeks to surcharge the defendants, who constitute three of the six directors of the plaintiff corporation, for alleged breaches of their fiduciary duties, is but one of *696several legal proceedings arising out of a deadlock among the six equal voting shareholders of plaintiff corporation who also constitute its board of directors (see, Lauer v Schoenholtz, 106 AD2d 551, 552; Matter of Rye Psychiatric Hosp. Center v Schoenholtz, 101 AD2d 309, appeal dismissed 63 NY2d 728). The instant appeal concerns two motions by defendants seeking, inter alia, to stay the within action…