Kavanaugh v. Commonwealth Trust Co.
Appellate Division of the Supreme Court of the State of New York
Appeal by the plaintiff, Charles H. Kavanaugh, who sues on behalf of himself and all other stockholders of the Commonwealth Trust Company of New York (formerly the Trust Company of the Republic) who. are situated similarly with himself, from an interlocutory judgment of the Supreme Court in favor of the defendants Wetmore and Brooker, entered in the office of the clerk of the county of Saratoga on the 13th day of December, 1904, upon the decision of the court, rendered after…
Read the full summary
Appeal by the plaintiff, Charles H. Kavanaugh, who sues on behalf of himself and all other stockholders of the Commonwealth Trust Company of New York (formerly the Trust Company of the Republic) who. are situated similarly with himself, from an interlocutory judgment of the Supreme Court in favor of the defendants Wetmore and Brooker, entered in the office of the clerk of the county of Saratoga on the 13th day of December, 1904, upon the decision of the court, rendered after a trial at the Saratoga Special Term, sustaining the said defendants’ demurrers to the plaintiff’s complaint. This…
1Opinion of the Court
Chase, J.:
The rules adopted in this State relating to corporate management, and the right of stockholders to sustain an action in their names, but in behalf of the corporation of which they are stockholders, have been frequently stated by the courts.
In Flynn v. Brooklyn City R. R. Co. (158 N. Y. 493) the court say: “As a general rule courts have nothing to do with the internal management of business corporations. Whatever may lawfully bo done by the directors or stockholders, acting through majorities prescribed by law, must of necessity be submitted to by the minority, for. corporations can…
2Cases cited9 opinions
- Brinckerhoff v. . BostwickNew York Court of Appeals · 1882
- Robinson v. SmithNew York Court of Chancery · 1831
- Flynn v. . Brooklyn City R.R. Co.New York Court of Appeals · 1899
- Greaves v. . GougeNew York Court of Appeals · 1877
- Fitchett v. MurphyAppellate Division of the Supreme Court of the State of New York · 1899
4 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Continental Securities Co. v. . BelmontNew York Court of Appeals · 1912
- Cavalry Construction, Inc. v. WDF, Inc.District Court, S.D. New York · 2010
- Syracuse Television, Inc. v. Channel 9, Syracuse, Inc.New York Supreme Court · 1966
- Weber v. WallersteinAppellate Division of the Supreme Court of the State of New York · 1906