James v. Bernhard

Order, Supreme Court, New York County (Carol R. Edmead, J.), entered January 16, 2013, which denied defendants’ motion pursuant to CFLR 1021 to remove plaintiff in this derivative action and substitute the special litigation committee of the board of governors of the National Arts Club (Club) as plaintiff, unanimously reversed, on the law, with costs, and the motion granted.

Defendants have established a “persuasive case” that “the proper protection of the corporation’s interest or the proper conduct of the litigation would be better served by the elimination or a change in the identity” of…