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TEMPLE MARBLE v. UNION MARBLE

87 N.Y.2d 574 (1996)

663 N.E.2d 890

640 N.Y.S.2d 849

A.J. Temple Marble & Tile, Inc., Respondent, v. Union Carbide Marble Care, Inc., et al., Appellants.

Court of Appeals of the State of New York.

Decided February 13, 1996.

Attorney(s) appearing for the Case

Kaufmann, Feiner, Yamin, Gildin & Robbins, New York City (David J. Kaufmann, Daniel Gildin, Susan H. Morton and William F. Cuozzi of counsel), for appellants.

Schnader, Harrison, Segal & Lewis, New York City (W. Michael Garner of counsel), for respondent.

Judges SIMONS, BELLACOSA, SMITH and CIPARICK concur with Judge LEVINE; Chief Judge KAYE concurs in result in a separate opinion in which Judge TITONE concurs.

LEVINE, J.

This appeal concerns the scope of section 691 (3) of the General Business Law, which imposes joint and several liability on certain persons for fraudulent activities in connection with the registration, sale and promotion of franchises. The specific issue raised is whether that section imposes liability on the franchisor's officers, directors and other persons who directly or indirectly control the...

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