Lazar v. Merchants' National Properties, Inc.

Defendant Merchants’ National Properties, Inc. appeals from an order of Special Term granting defendant McCrory Corporation’s motion to -substitute McCrory as plaintiff in place of plaintiff Lazar and to eliminate McCrory as a party defendant. The issue is whether the corporation in whose right a derivative shareholders’ action is brought, and which prior to suit had declined to sue, may be so -substituted.

Special Term’s -order granting the motion for substitution should be modified to condition the substitution on McCrory’s consent to a new motion by defendants to dismiss the amended…