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German-American Coffee Co. v. Diehl
New York Court of Appeals
216 N.Y. 57, 109 N.E. 875 (1915)
- Written by Mary Phelan D'Isa, JD
Facts
German-American Coffee Co., a New Jersey corporation, (plaintiff) sued one of its directors (defendant) in a New York state court under New York law for damages for the declaration of an illegal dividend. The dividend was also illegal under New Jersey law, but New Jersey law only allowed such suits against a director to be brought by the shareholders. The corporation’s main business office was in New York, and the corporation managed, directed, and conducted its business in New York. The director demurred to the complaint, and the question of the New York law’s applicability was certified to the New York Court of Appeals.
Rule of Law
Issue
Holding and Reasoning (Cardozo, J.)
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