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POMEROY v. SIMON

17 N.J. 59 (1954)

110 A.2d 19

ALFRED POMEROY, INDIVIDUALLY AND AS A COPARTNER OF SELWYN-POMEROY CO., A PARTNERSHIP, SAUL FISCHBEIN AND KARL GREEN, PLAINTIFFS-RESPONDENTS, v. HARRY SIMON, ARTHUR J. SIMON, EDWARD H. SIMON AND HELEN SIMON, INDIVIDUALLY AND AS PARTNERS TRADING AS EAGLE BUTTON COMPANY, DEFENDANTS-APPELLANTS.

The Supreme Court of New Jersey.

Decided December 20, 1954.

Attorney(s) appearing for the Case

Mr. Max L. Rosenstein argued the cause for appellants.

Mr. Adrian M. Unger argued the cause for respondents (Mr. Sam Denstman, on the brief; Messrs. Milton M. and Adrian M. Unger, attorneys).

The opinion of the court was delivered by HEHER, J.

The essential question here is whether the plaintiff corporate shareholders may have recourse to the Attachment Act, N.J.S. 2A:26-1 et seq., in a stockholders' derivative action against nonresident officers and directors of the corporation for the construction and rescission of a sales agency agreement allegedly procured from the corporation by fraud and used by defendants to mulct the corporation...

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