Manzo v Scanlon

Holding The Appellate Division reversed the lower court’s grant of summary judgment dismissing the complaint, finding that the plaintiffs raised a triable issue of fact regarding the corporation’s capacity through evidence of reinstatement and that the law of the case doctrine did not bar the individual plaintiff’s claim. The matter was remitted for a new determination of the plaintiffs’ cross-motion for summary judgment.

The court’s words

the plaintiffs raised a triable issue of fact as to whether LRM had capacity to bring this action by submitting evidence that LRM was restored to active status upon its payment of tax arrears

2026 NY Slip Op 06428, at the official text

the court did not determine in the prior order whether Manzo had a direct claim for harm to him individually, as opposed to on behalf of LRM

2026 NY Slip Op 06428, at the official text

the Supreme Court should have denied the defendant's motion for summary judgment dismissing the complaint and, in effect, declaring that any shares of stock in LRM issued to the defendant are not a nullity

2026 NY Slip Op 06428, at the official text