R & J Bottling Co., Inc. v. Rosenthal
| Decision Date | 21 November 1972 |
| Citation | 40 A.D.2d 911,337 N.Y.S.2d 783 |
| Court | New York Supreme Court — Appellate Division |
| Parties | R & J BOTTLING CO., INC., et al., Respondents, v. Sidney ROSENTHAL, Appellant, and Union National Bank of Troy, Defendant. |
Martin, Noonan, Hislop & Troue, Troy (J. Paul Troue, Troy, of counsel), for respondents.
Myron J. Cohn, Schenectady (Sol Greenberg, Schenectady, of counsel), for appellant.
Before STALEY, J.P., and GREENBLOTT, SWEENEY, SIMONS and REYNOLDS, JJ.
Appeal from an order of the Supreme Court at Special Term, entered March 23, 1972 in Rensselaer County, which granted plaintiffs' motion for a preliminary injunction and denied Rosenthal's cross-motion for injunctive relief.
The individual litigants are the sole owners, officers and directors of the respondent corporation whose only business function is the ownership and leasing of a parcel of real property located in Cohoes, New York. In October, 1970 appellant, who alleges that prior to this date he as president of the corporation actively managed the office of the corporation without compensation, moved to Florida and respondent Jenkins, the treasurer, took over all management and operational duties. On November 30, 1970 Jenkins sent appellant a letter stating that effective December 1, 1970 he would pay himself a management fee of 10% Of the gross rental collected for the performance of his newly assumed management duties. Thereafter, in reaction to Jenkins' position, the appellant withdrew $810 from the corporate account maintained at the defendant bank. In response to these withdrawals, the respondents brought an action against the appellant and the bank seeking a permanent injunction enjoining appellant from exercising any duties as a director or officer, removal of appellant as an officer and director and an accounting for the funds already withdrawn, and upon the respondents' request Special Term granted a preliminary injunction which enjoined appellant from exercising all duties as an officer or director, from drawing any checks on corporate accounts, from making any transfers of corporate assets and from interfering in the operation of the corporation and the defendant bank from honoring any check drawn by the appellant on any corporate account. Appellant then took the instant appeal to contest Special Term's order.
Preliminary injunctions are within the discretion of the trial court and an appellate court will review only for abuse of that...
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