Herman v. Levanne

After trial, the court finds for the defendant and dismisses the complaint.

In this action plaintiff sues a stockholder to recover certain moneys not paid him by a bankrupt corporate party to an employment contract. Plaintiff claims defendant, a stockholder in the defunct corporation, is liable under section 630 of the Business Corporation Law.

The single important question that emerged from the testimony of the parties is whether plaintiff was an “ employee ” within the meaning of section 630 of the Business Corporation Law. That section imposes liability on the 10 largest shareholders for “…