Stuto v. Kerber

New York Court of Appeals

Stuto v. Kerber

963 N.E.2d 790, 963 N.E.2d 1257, 18 N.Y.3d 909, 940 N.Y.S.2d 213, 2012 NY Slip Op 63975

CourtNew York Court of Appeals

DecidedFebruary 16, 2012

Docket19

StatusPublished

Cited by2 cases

This text of 963 N.E.2d 790 (Stuto v. Kerber) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Stuto v. Kerber, 963 N.E.2d 790, 963 N.E.2d 1257, 18 N.Y.3d 909, 940 N.Y.S.2d 213, 2012 NY Slip Op 63975 (N.Y. 2012).

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Opinion

OPINION OF THE COURT

Memorandum.

The order of the Appellate Division should be affirmed, with costs.

Plaintiff Christine M. Stuto was employed by Wurld Media, Inc., a corporation organized under the laws of the State of Delaware. In May 2006, after encountering financial difficulties, Wurld Media stopped paying plaintiffs salary. She continued *910 working, however, in the hope that the corporation’s financial position would improve. It did not, and the corporation closed. Plaintiff thereafter obtained a judgment against Wurld Media for unpaid wages and commenced this action against Wurld Media’s 10 largest shareholders to recover the unpaid wages pursuant to Business Corporation Law § 630. Supreme Court granted the motion of three defendant shareholders to dismiss the complaint on the ground that the statute does not apply to foreign corporations, and the Appellate Division affirmed.

We agree with the courts below that the plain language and history of Business Corporation Law § 630 (see Armstrong v Dyer, 268 NY 671 [1935]), as well as other relevant portions of the Business Corporation Law (see Business Corporation Law § 102 [a] [4], [7]; § 1319), reveal that section 630 applies to only domestic corporations, and not to foreign corporations.

Chief Judge Lippman and Judges Ciparick, Graffeo, Read, Smith, Pigott and Jones concur.

Order affirmed, with costs, in a memorandum.

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OPINION OF THE COURT

Memorandum.

The order of the Appellate Division should be affirmed, with costs.

Plaintiff Christine M. Stuto was employed by Wurld Media, Inc., a corporation organized under the laws of the State of Delaware. In May 2006, after encountering financial difficulties, Wurld Media stopped paying plaintiffs salary. She continued *910 working, however, in the hope that the corporation’s financial position would improve. It did not, and the corporation closed. Plaintiff thereafter obtained a judgment against Wurld Media for unpaid wages and commenced this action against Wurld Media’s 10 largest shareholders to recover the unpaid wages pursuant to Business Corporation Law § 630. Supreme Court granted the motion of three defendant shareholders to dismiss the complaint on the ground that the statute does not apply to foreign corporations, and the Appellate Division affirmed.

We agree with the courts below that the plain language and history of Business Corporation Law § 630 (see Armstrong v Dyer, 268 NY 671 [1935]), as well as other relevant portions of the Business Corporation Law (see Business Corporation Law § 102 [a] [4], [7]; § 1319), reveal that section 630 applies to only domestic corporations, and not to foreign corporations.

Chief Judge Lippman and Judges Ciparick, Graffeo, Read, Smith, Pigott and Jones concur.

Order affirmed, with costs, in a memorandum.

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Bluebook (online)

963 N.E.2d 790, 963 N.E.2d 1257, 18 N.Y.3d 909, 940 N.Y.S.2d 213, 2012 NY Slip Op 63975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stuto-v-kerber-ny-2012.

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