Biel v. Crosse & Blackwell, Ltd.

This is a motion for summary judgment. The plaintiffs proceed on a written guaranty executed by this defendant, guaranteeing the payment of the dividend on the preferred stock of Crosse & Blackwell, Inc. The defense set forth in the affidavit in opposition is that Crosse & Blackwell, Inc., has been dissolved, and, therefore, the guaranty is no longer operative.

At the argument I was of the opinion that it will be an issue of fact as to whether or not the extinction of Crosse & Blackwell, Inc., was brought about in good faith or otherwise. I have since read the cases cited by the defendant, and these cases confirm that view, namely, Mason v. Standard, etc., Co. ( 85 App. Div. 520 ); Lorrillard v. Clyde ( 142 N. Y. 456 ); Columbus Trust Co. v. Moshier ( 51 Misc. 270 ; affd., 121 App. Div. 906 ; affd., 193 N. Y. 660 ); Stannard v. Reid & Co. ( 114 App. Div. 135 ,136). This issue as to the good faith of the defendant is a matter that cannot be determined upon affidavits, but must be disposed of after a trial.

The motion will, therefore, be denied.