Kelly v. Overseas Investors, Inc.

We agree with the Appellate Division, for the reasons stated by it, that the plaintiff has capacity to sue. However, the complaint fails to allege a valid cause of action and must be dismissed. Under the law of Pennsylvania, which is unquestionably applicable, the liquidator of a defunct insurance company may not sue to recover for damages resulting from fraudulent misrepresentations of the corporation’s assets. (See Kintner v. Connolly, 233 Pa. 5; Patterson v. Franklin, 176 Pa. 612; see, also, Wheeler v. American Nat. Bank, 338 S. W. 2d 486, 496-498, revd. on other grounds 162 Tex. 502.) It…