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Wollman v. Littman

New York Supreme Court, Appellate Division
316 N.Y.S.2d 526 (1970)


The close corporation at issue in this case is experiencing deadlock. Two competing factions, the Nierenbergs (plaintiffs) and the Littmans (defendants), each own 50 percent of the corporation’s stock and have equal representation on the board of directors. The Nierenbergs are also affiliated with the Louis Nierenberg Corporation (LNC), which is the main supplier for the corporation. The Littmans developed the corporation’s customer base. The Littmans sued the Nierenbergs, alleging that the Nierenbergs were undermining the corporation in various ways, most significantly by trying to lure the corporation’s customers to become customers of LNC instead. In response, the Nierenbergs filed this action. They point to the other lawsuit to argue that the factions are so at odds that corporate governance has become impossible. They seek the appointment of a receiver to oversee the dissolution of the corporation. The trial court found in the Nierenberg’s favor.

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