Question
On October 7, 2015, defendant Idis, Atrics & Seltzer, P.C., a professional corporation organized for the purposes of engaging in the practice of law, entered
On October 7, 2015, defendant Idis, Atrics & Seltzer, P.C., a professional corporation organized for the purposes of engaging in the practice of law, entered into an agreement with the plaintiff for the lease of office space in a building located at 1234 Nicewarner Road in Testimony, New York. The lease was executed for the landlord by one of the partners of the plaintiff company and for the tenant, the defendant professional corporation, "by AI K. Seltzer, Vice President."
Plaintiff filed this action in May 2018 seeking to recover rent and other charges of approximately $9,000.00 alleged to be due and owing under the lease. Named as defendants in the complaint were the professional corporation and each of the individual shareholders of the corporation, namely, AI K. Seltzer, Jerry Atrics, and Arthur Idis.
The three individual defendants moved to dismiss the action on the grounds that they were neither necessary nor proper parties. Other than the argument that each of the individual defendants is liable as a shareholder of the professional corporation, plaintiff makes no claim that defendant Al K. Seltzer acted in any capacity except a representative one in executing the lease on behalf of the corporation.
A. Should the court grant or deny the individual defendants' motion to dismiss them from the lawsuit? Explain your answer in detail.
B. What could the plaintiff have done on October 7, 2015, to be entitled to obtain payment from the individual defendants and thereby have additional protection against the tenant's failure to pay?
C. How effective would be your answer to B) above if the lease term was for a period of four years and the plaintiff sought the additional protection in October 2017? Was there consideration for the additional protection? Explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A Motion to Dismiss the Individual Defendants The court should likely grant the individual defendants motion to dismiss them from the lawsuit In gener...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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