Kavanaugh v. Wetmore
Appellate Division of the Supreme Court of the State of New York
Appeal from Trial Term, Saratoga County. Action by 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, against Charles W. Wetmore, and Charles F. Brooker, impleaded with Commonwealth Trust Company of New York, and others.
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Appeal from Trial Term, Saratoga County. Action by 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, against Charles W. Wetmore, and Charles F. Brooker, impleaded with Commonwealth Trust Company of New York, and others. From an interlocutory judgment sustaining demurrers to the complaint (92 N. Y. Supp. 233), plaintiff appeals. Affirmed. This action is brought by the plaintiff as a stockholder of the defendant the Commonwealth Trust…
1Opinion of the CourtChase, 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, 53 N. E. 520, the court say: •
“As a general rule, courts have nothing to do with the internal management of business corporations. Whatever may lawfully be done by the directors or stockholders, acting through majorities 'prescribed by law, must of necessity be submitted to by the minority, for…
2Cases cited10 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
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3Cited by1 opinion
- Cavalry Construction, Inc. v. WDF, Inc.District Court, S.D. New York · 2010