Lorillard v. Clyde — 20 N.Y.S. 433

Majority

p. 433

Lorillard v. Clyde et al.

(Superior Court of New Work City, General Term.

October 24, 1892.)

Headnote

Contract—Dividend on Stock—Action to Recover—Dissolution—Defense.

Prior to the formation of a corporation by plaintiff and defendants, they entered into a contract to the effect that defendants should have the management of the corporation, and would guaranty to plaintiff specified dividends for seven years. The contract was to exist independently of the corporation. Five years after its formation, plaintiff, by action in the name of the people, in which he was joined,

p. 434

procured a dissolution of the corporation. Held, that the procuring of such dissolution by plaintiff was no defense to an action by him on such contract to recover dividends accruing thereafter. 15 N. X. Supp. 809, affirmed, without opinion.

Appeal from trial term.

Action by Jacob Lorillard against William P. Clyde and Benjamin F. Clyde to recover money due on a contract. From a judgment for plaintiff, defendants appeal.

For opinion at trial term, see 15 N. Y. Supp. 809 .

Argued before Freedman, Dugro, and Gildersleeve, JJ.

Boardman & Boardman, (James C. Carter and William N. Dykeman, of counsel,) for appellants. Glover, Sweezy & Glover, (David Leventritt and Asa Bird Gardiner, of counsel,) for respondent.

The judgment appealed from is affirmed, with costs, on the opinion of the court below.