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Yuk Fung Ma v. J.C. Sake Inc.

2011 WL 2175913 (2011)

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Yuk Fung Ma v. J.C. Sake Inc.

New York Supreme Court
2011 WL 2175913 (2011)

SC

Facts

Yuk Fung Ma (plaintiff) signed an agreement with Gee Wai Chan (Alex) (defendant) and Gee On Chan (Adam) (defendant) to open a restaurant. To that end, the trio formed a corporation, J. C. Sake Inc. (Sake) (defendant). Ma contributed $46,414.50 to the venture and became the restaurant’s manager and chef. Alex became unhappy with Ma’s management of the restaurant and threatened to “kick [him] out” if Ma did not agree to sell his shares in the company. Ma agreed that if he were paid his fair share, he would sell. Alex and Adam offered Ma $47,000 for his interest. Ma did not believe that this was the fair value of his shares and rejected the offer. The next day, Ma arrived at the restaurant to find the locks had been changed so that Ma was unable to open the restaurant. Adam then told Ma that he was reducing the offer to $35,000 and that if Ma did not accept the offer, Adam and Alex would keep the restaurant closed, and Ma would receive nothing. Ultimately, Ma accepted an offer of $38,000, believing he had no other choice. Ma sued Sake, Alex, and Adam, alleging that he agreed to sell his shares under economic duress. Ma asked the court to void the sale.

Rule of Law

Issue

Holding and Reasoning (Demarest, J.)

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