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HERMAN v. FEINSMITH

39 A.D.3d 327 (2007)

834 N.Y.S.2d 140

MEL HERMAN, Respondent, v. BARRY FEINSMITH et al., Appellants, et al., Defendant. MEL HERMAN, as a Shareholder of BBR WorldWide Transmission Parts Distributors, Inc., Respondent, v. BBR WORLDWIDE TRANSMISSION PARTS DISTRIBUTORS, INC., et al., Appellants, et al., Defendant.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided April 17, 2007.

Plaintiff, a one-quarter shareholder in a subchapter S corporation, sued individually, alleging breach of a shareholders agreement, and derivatively on behalf of the corporation, alleging breach of fiduciary duty. Plaintiff had loaned $150,000 to the corporation and invested $30,000 for his 25% interest in defendants' transmission parts corporation in August 1993. He soon became concerned about the financial status of the corporation, including the fact that defendant Feinsmith...

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