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Dusenberry v. Sagamore Development Co.

144 N.Y.S. 1113 Court N.Y. App. Div. Decision date 1913-11-28 English

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p. 1113
DUSENBERRY et al. v. SAGAMORE DEVELOPMENT CO. et al.
(Supreme Court, Appellate Division, Second Department.
November 28, 1913.)

Headnote

Appeal from Special Term, Westchester County. Action by Charles Dusenberry, Jr., and others, against the Sagamore Development Company and others. From an order granting a preliminary injunction, defendants appeal. Affirmed, as modified. See, also, 157 App. Div. 485 , 142 N. Y. Supp. 595 .
Allan R. Campbell, of New York City, for appellants.
John F. Brennan, of Yonkers, for respondents.

We do not decide whether the issue of the 175 shares of stock was legal. But four of the plaintiffs hold the overdue mortgage, the bonds will soon mature, and provision must be made for indebtedness. The land is the only recourse, and the 1910 list prices may be prohibitive of sale. The defendants should be allowed to exercise the usual powers in the management of the corporation. It was formed to sell land, and its business is practically suspended by the injunction, and there is menace in the indebtedness. A sense of duty and of their responsibility for improvident action presumably will deter the defendants from wasting the corporate property. The order should be modified, so far as it restrains the sale of land, and, as so modified, affirmed, without costs.