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New Castle Siding Co. v. Wolfson

Court of Appeals of the State of New York
Oct 9, 1984
63 N.Y.2d 782 (N.Y. 1984)

Opinion

Argued September 6, 1984

Decided October 9, 1984

Appeal from the Appellate Division of the Supreme Court in the Second Judicial Department, Albert M. Rosenblatt, J.

Lawrence A. Cohen and Gilbert S. Isaac for appellant.

Emanuel Thebner and Elizabeth M. Hecht for respondent.


MEMORANDUM.

The order of the Appellate Division should be affirmed, with costs.

Appellant, whose cross claim is asserted in his individual capacity, seeks to recover for the delinquent taxes and penalties he has paid on behalf of the corporation and for loans made to the corporation above and beyond his initial investment. The former were made in appellant's capacity as an officer or employee of the corporation (see U.S. Code, tit 26, § 6671, subd [b]; § 6672; Tax Law, §§ 1085, 1131, 1134) and would be the result of respondent's negligence, if any, in discharging his obligations to the corporation for which he would not be responsible to a stockholder (cf. White v Guarente, 43 N.Y.2d 356). In making the loans, appellant acted as a general creditor of the corporation, to whom it is well settled that no duty is owed by an accountant (see Ultramares Corp. v Touche, 255 N.Y. 170). Thus, in neither case can appellant, as an individual shareholder, have recovery against respondent.

Chief Judge COOKE and Judges JASEN, JONES, MEYER, SIMONS and KAYE concur; Judge WACHTLER taking no part.

Order affirmed, with costs, in a memorandum.


Summaries of

New Castle Siding Co. v. Wolfson

Court of Appeals of the State of New York
Oct 9, 1984
63 N.Y.2d 782 (N.Y. 1984)
Case details for

New Castle Siding Co. v. Wolfson

Case Details

Full title:NEW CASTLE SIDING COMPANY, INC., Plaintiff, v. HORACE WOLFSON et al.…

Court:Court of Appeals of the State of New York

Date published: Oct 9, 1984

Citations

63 N.Y.2d 782 (N.Y. 1984)
481 N.Y.S.2d 70
470 N.E.2d 868

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