Practice point: The defendants established their prima facie
entitlement to judgment as a matter of law by submitting evidence that
all of the plaintiff's losses arose from his status as a shareholder of a nonparty corporation. A shareholder, even in a
closely-held corporation, may not recover in his or her individual
capacity for wrongs against the corporation. The evidence established, prima facie, that the moving defendants were not
liable to the plaintiff for any of the relief sought, and that the
plaintiff's claims should have been brought on behalf of the nonparty
corporation in a derivative action.
Student note: The appeals from the two intermediate orders were dismissed because the right of direct appeal therefrom
terminated with the entry of the judgment in the action. The issues raised on the appeals from those orders were
brought up for review and were considered on the appeal from the
judgment, pursuant to CPLR 5501[a][1].
Case: Barbaro v, Spinelli, NY Slip Op 06786 (2d Dept. 2014)
Here is the decision.
Tomorrow's issue: Summary judgment in a medical malpractice action.
