American Broadcasting-Paramount Theatres, Inc. v. Frye

Defendants appeal by permission of this court from a judgment of the Appellate Division unanimously affirming a judgment entered on a directed verdict in favor of the plaintiff in an action brought by the plaintiff as a creditor of Pathe Pictures, Inc. (formerly known as Studio Films, Inc.) to recover for loans improperly made by the defendants as officers and directors of Pathe to one of them in his capacity as a stockholder of Pathe.

The complaint is based upon section 59 of the Stock Corporation Law * .

The answer interposed by defendants alleged two affirmative defenses. The second…