Feigenbaum v. Narragansett Stables Co. — 245 N.Y. 628

Majority

p. 628

Beatrice Feigenbaum, an Infant, by Davis Feigenbaum, Her Guardian ad Litem, Respondent, v. Narragansett Stables Co., Inc., Defendant, and John H. Naughton et al., Appellants.

(Argued June 14, 1927;

decided July 20, 1927.)

Headnote

Corporations — directors — distribution of assets without making provision for payment of creditors — action by creditor to compel directors to account.

Feigenbaum v. Narragansett Stables Co., Inc., 219 App. Div. 729 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the second judicial department,

p. 629

entered January 21, 1927, affirming a judgment in favor of plaintiff entered upon a decision of the court on trial at Special Term. Plaintiff recovered a judgment against defendant corporation for personal injuries received through its negligence. Execution was returned unsatisfied. On supplementary proceedings it appeared that subsequent to plaintiff’s injury the corporation ceased doing business but was never legally dissolved and that appellants herein, the only stockholders, directors and officers of the corporation, divided the assets between them. This action was brought to compel such appellants to account for sufficient of the assets to pay the plaintiff’s judgment.

James G. Purdy and Arthur K. Wing for appellants.

Anton Gronich and Abraham S. Keilson for respondent.

Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman, Kellogg and O’Brien, JJ.